You Spend $150 Every Month Planting Flowers in Your Front

question 227

Multiple Choice

You spend $150 every month planting flowers in your front yard. Your neighbor has told you that she derives $20 a month in enjoyment from being able to look at your beautiful flowers. Which of the following is true?

• A) You are spending too much on flowers, because your neighbor derives only $20 worth of benefits.
• B) You should refuse to spend anything on flowers unless your neighbor pays you $20 a month.
• C) If you took into consideration the benefits your neighbor derived, the efficient level of flower planting would be greater than $150 a month.
• D) If you took into consideration the benefits your neighbor derived, the efficient level of flower planting would be less than $150 a month.