Refer to Figure 7.1. Suppose that instead of $350, Angus earns only $250 by playing the bagpipes, but all other earnings remain the same. If there is no ordinance against loud music, the Coase theorem predicts that
A) Dudley will pay Angus to not play the bagpipes.
B) Angus will pay Dudley so Angus can play the bagpipes.
C) Dudley will do nothing and Angus will mop floors.
D) no bargain can be reached between Angus and Dudley.
A
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