Dick Owns a Dog Whose Barking Annoys Dick's Neighbor Jane

Dick owns a dog whose barking annoys Dick's neighbor Jane.Suppose that the benefit of owning the dog is worth $500 to Dick and that Jane bears a cost of $700 from the barking.Assuming Dick has the legal right to keep the dog,a possible private solution to this problem is that

A) Jane pays Dick $450 to give the dog to his parents who live on an isolated farm.
B) Dick pays Jane $650 for her inconvenience.
C) Jane pays Dick $650 to give the dog to his parents who live on an isolated farm.
D) There is no private transaction that would improve this situation.

Correct Answer:

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