Wally owns a dog whose barking annoys Wally's neighbor, Corrine. Suppose that the benefit of owning the dog is worth $700 to Wally and that Corrine bears a cost of $500 from the barking. Assuming Wally has the legal right to keep the dog, a possible private solution to this problem is that
A)Wally pays Corrine $600 for her inconvenience.
B)Corrine pays Wally $400 to give the dog to his parents who live on an isolated farm.
C)Corrine pays Wally $550 to give the dog to his parents who live on an isolated farm.
D)The current situation is efficient.

Question

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The Answer of Wally owns a dog whose barking annoys Wally's neighbor, Corrine. Suppose that the benefit of owning the dog is worth $700 to Wally and that Corrine bears a cost of $500 from the barking. Assuming Wally has the legal right to keep the dog, a possible private solution to this problem is that
A)Wally pays Corrine $600 for her inconvenience.
B)Corrine pays Wally $400 to give the dog to his parents who live on an isolated farm.
C)Corrine pays Wally $550 to give the dog to his parents who live on an isolated farm.
D)The current situation is efficient.

Wally Owns a Dog Whose Barking Annoys Wally's Neighbor, Corrine