Suppose a candy producer's operation interferes with doctors working at a hospital. Ronald Coase's solution to the problem most likely would be to

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Ronald Coase's solution to the problem of externalities is to find a private remedy. In this situation, the candy producer should negotiate with the hospital to find a private solution that minimizes the negative impacts of the candy production on the hospital's operation. This could involve sound insulation, changes to the production schedule or location, or compensation to the hospital for the inconvenience caused. Coase argues that when property rights are clearly defined and transaction costs are low, private bargaining can lead to an efficient outcome where the conflicting parties can find a mutually beneficial solution.

Suppose a Candy Producer's Operation Interferes with Doctors Working at a Hospital