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 $200,000 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

The movie producers should pay for the sound-proofing of the factory as it is the least costly solution ($200,000) compared to moving the movie set ($1.5 million) or moving the factory ($4 million). Since the factory has the property right, the movie producers should bear the cost.

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