Your roommate has the right to play her harmonica during the day. But you find the best time to study is during the day, and the harmonica playing makes it hard for you to concentrate. You tell your roommate that you will do her laundry every week if she does not play the harmonica during the day and she agrees to this. This is an example of

A. an injunction.
B. liability rules.
C. the Coase theorem.
D. the drop-in-the-bucket problem.


Answer: C

Economics

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