Question

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 $51 to clean up after herself. b. charge your roommate at least $50 but no more than $100 to keep you from complaining about the mess. c. charge your roommate at least $25 to have you clean up after her. d. pay your roommate at least $25 but no more than $50 to clean up after herself.

Answer 1

I think the answer should be .b.charge your roommate at least $50 but no more than $100 to keep you from complaining about the mess