Author Question: Suppose an individual discovers the mouth of a previously unknown cave (expected to contain a single ... (Read 71 times)

kodithompson · **on:** Jun 30, 2018

Suppose an individual discovers the mouth of a previously unknown cave (expected to contain a single large diamond) on his property that extends under land owned by others. To arrive at an economically efficient outcome with low transaction cost, the law will:
a. award the diamond to the person who locates the diamond first.
b. award the diamond and cave to the person whose land it opens into.
c. award the diamond to the owner of the land above it.
d. award the diamond to each of the owners under whose land the cave passes.

Question 2

To know the customer is to understand costs.
Indicate whether the statement is true or false