Assume that your roommate is very messy. Suppose she gets a $25 benefit from being messy but imposes a $50 cost on you. The Coase theorem would suggest that an efficient solution would be for you to
a. pay your roommate at least $25 but no more than $50 to clean up after herself.
b. pay your roommate at least $51 to clean up after herself.
c. charge your roommate at least $25 to have you clean up after her.
d. charge your roommate at least $50 but no more than $100 to keep you from complaining about the mess.
a
You might also like to view...
The ________ effect refers to the change in quantity demanded for a good that results from the effect of a change in the good's price on consumer's purchasing power
A) substitution B) population C) ceteris paribus D) income
A work stoppage by a union in solidarity with another union's cause is known as a
A) secondary boycott. B) sympathy strike. C) jurisdictional dispute. D) primary boycott.
Fred Ramirez is a farmer who charts the relationship between number of acres planted in corn and number of bushels of corn harvested. Which marginal concept can Fred measure with this data?
a. marginal utility b. marginal product c. marginal cost d. marginal revenue product e. marginal factor cost
Real investment spending is ____ real personal consumption.
A. equal to B. greater than C. stable compared to D. highly volatile compared to