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Jack Benefits from Keeping Four Dogs Whose Barking Bothers His

Question 91

Multiple Choice

Jack benefits from keeping four dogs whose barking bothers his neighbor Jane.If Jane has the legal right to a quiet neighborhood,and mutual bargaining is expensive,which of the following will hold true?


A) Government intervention,in this case,is a necessity for achieving an efficient outcome.
B) If Jack's benefit exceeds Jane's cost,Jane pays Jacks to keep his dogs.
C) If Jack's benefit is less than Jane's cost,Jane pays Jack to keep his dogs.
D) Jack pays Jane to compensate for the external cost generated by him.

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