Paul owns a mushroom farm.The smell from the farm reduces the value of adjacent houses by a total of $20 000.Suppose that the benefit of the mushroom farm to Paul is $30 000.Assuming that Paul has the legal right to own the farm, a possible private solution to this problem is that:
A) adjacent property owners pay Paul $20 000 to stop farming mushroom
B) there is no private solution that would improve this situation
C) Paul pays the adjacent property owners $30 000 to compensate them for the loss in house values
D) adjacent property owners pay Paul $25 000 to stop farming mushrooms
Correct Answer:
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