A metal stamping factory moves next to a day care center.Noise from the factory makes it impossible for the kids to nap.It would cost the factory $5 million to move,and it would cost the day care center $1 million to move.Sound insulation for the factory costs $1 million,while insulation for the day care center costs $200,000.The court determines that the day care center has the property right.Which of the following optimal solutions is likely to be true given the scenario?
A)The factory should install sound insulation because that is cheaper than moving.
B)The factory should pay for the relocation of the day care center.
C)The factory should buy insulation for the day care center.
D)The day care center should buy its own insulation.
E)The day care center should relocate.

Question

Quizplus · Accepted Answer

The most cost-effective solution would be for the factory to purchase insulation for the day care center since it is cheaper than moving the factory or the day care center. This solution would allow both parties to continue operating in their current locations without significant cost. Additionally, since the day care center has the property right, it is not fair to require the center to incur the cost of relocating or purchasing their own insulation. Therefore, option C is the best choice.

A Metal Stamping Factory Moves Next to a Day Care