Economics - Coase Theorem .. Please help?

Question

A copper ore refiner pollutes the water upstream from a brewery. The transactions costs of reaching an agreement between the two are low. According to the Coase Theorem, the amount of copper refining will be at its efficient level _______________

if the property right to the stream is assigned to the ore refiner but not if it is assigned to the brewery

if the property right to the stream is assigned to the brewery but not if it is assigned to the ore refiner

when the property right to the stream is assigned to either the refiner or the brewer

when the stream is owned by the local government

Answer 1

C - when the proprety right to the stream is assigned to either the refiner or the brewer.

Coase's Theorem basically states that the outcome will be the same regardless of to whom the property rights are assigned as a result of bargaining.  The producer who is able to put the stream to the highest use will be the one who ends up with the rights to it.