The 'Nuts & Bolts' factory is located next to the movie set for 'The silent man'.The noise coming from the factory makes the movie production close to impossible.The factory can be sound-proofed for $2 million or it can be moved for $4 million.The movie set can be moved for $1.5 million.Assume that the factory has the property right.What would be the optimal solution to this problem?
A) The factory should pay for its own sound-proofing
B) The movie producers should pay for the sound-proofing of the factory
C) The movie producers should pay to move the movie set
D) The factory should pay to move the movie set
E) The factory should pay to move the factory

Question

Quizplus · Accepted Answer

Since the factory has the property right, the movie producers should bear the cost. Moving the movie set for $1.5 million is the least expensive option compared to sound-proofing the factory for $2 million or moving the factory for $4 million.

The 'Nuts & Bolts' Factory Is Located Next to the Movie