Business, 23.01.2020 18:31 mayhy100

Asarta inc. is polluting into a nearby fishing stream; doing so benefits them $40,000 a year. the fishermen are unhappy as their trout are dying off. typically, the fishermen can catch trout and sell it to a local market where they can earn about $8,000 a year. currently, asarta inc. has the rights to use the stream as they see fit. which of the following is an optimal solution according to the coase theorem?

a. asarta inc. could pay the fishermen $8,500 and keep polluting
b. asarta inc. could pay the fishermen $7,000 and keep polluting
c. there is no optimal solution given the current property rights
d. the fishermen cout the fishermen could pay asarta inc. $4,000 to stop them

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Asarta inc. is polluting into a nearby fishing stream; doing so benefits them $40,000 a year. the f...

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