Assume That Your Roommate Is Very Messy

question 146

Multiple Choice

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.

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Definitions:

Question Marks

In a business context, 'question marks' refer to products or business units that have potential for growth but currently do not generate much revenue, often requiring significant investment to improve their market position.

BCG Matrix

A strategic business tool that classifies business units or products into four categories (Stars, Cash Cows, Question Marks, Dogs) based on market growth and market share.

Target Market

A specific group of consumers identified as the intended recipients of a marketing campaign or product line.

Components

The individual parts or elements that make up a larger system or product.