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Question 3. [9 points] Suppose two houses in the country are close to each other but far from any other residence. To keep birds out
Question 3. [9 points] Suppose two houses in the country are close to each other but far from any other residence. To keep birds out of the garden, a Master Gardener at one of the two homes installs a device that creates aloud bang every few minutes. It is effective in scaring the birds but is incredibly disruptive for the Family next door. Possible solutions to the issue include, 0 The Family buys ear plugs for $10 and suffers a $50 loss from inconvenience and impeded household conversation 0 The Master Gardener dismantles the noise contraption and absorbs $200 in lost crops a] What is the economically efficient outcome in this situation? b) If the Family has the property rights to the country air and transaction costs are zero, what solution would result? Explain c] If the Master Gardener has the property rights to the country air and transaction costs are zero, what solution would result? Explain
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