試題詳解

19. Consider the situation where the noise of a factory’s production affects nurses in the dormitory next door. If there are no transaction costs to impede bargaining, which of the following statements is correct?
(A) Whether the final output level will be Pareto efficient depends on who has the initial property rights.
(B) The nurses would be better off in the bargained allocation if they initially had a right to undisturbed sleep than they would if the factory has the right to make noise.
(C) If the factory has the right to make noise, it will prefer not to bargain with the nurses.
(D) If the nurses have the initial rights, they will obtain all of the net social gain from factory production.