Dick owns a dog whose barking annoys Dick's neighbor Jane.Suppose that the benefit of owning the dog is worth $200 to Dick and that Jane bears a cost of $400 from the barking.Assuming Dick has the legal right to keep the dog,a possible private solution to this problem is that

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In this scenario, a possible private solution would be for Jane to pay Dick to give the dog to his parents who live on an isolated farm. This would benefit both parties- Dick would receive $300 and Jane would no longer have to suffer from the noise. Option A is not a feasible solution since it assumes that Dick's parents are willing to take the dog, and it also requires Jane to pay an amount that is less than her actual cost. Option B requires Dick to compensate Jane for more than her actual cost, which would not be a fair solution. Option D is not a solution, as there is a possible private solution available.

Dick Owns a Dog Whose Barking Annoys Dick's Neighbor Jane