You spend $300 every month to keep your lawn and garden maintained. Your neighbor has told you that she derives $50 a month in enjoyment from being able to look at your beautiful yard. Which of the following is true?
A. If you took into consideration the benefits your neighbor derived, the efficient level of lawn maintenance would be greater than $300 a month.
B. You should refuse to spend anything on your yard unless your neighbor pays you $50 a month.
C. You are spending too much on your yard, because your neighbor derives only $50 worth of benefits.
D. If you took into consideration the benefits your neighbor derived, the efficient level of lawn maintenance would be less than $300 a month.
Answer: A
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What will be an ideal response?
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a. True b. False