Assume That Your Housemate Is Very Messy

question 113

Multiple Choice

Assume that your housemate is very messy. Suppose he gets a $200 benefit from being messy but imposes a $100 cost on you. The Coase theorem would suggest that an efficient solution would be for your housemate to:

• A) stop his messy habits or force him to move out
• B) pay you at least $100 but less than $200 to live with the clutter
• C) continue to be messy and force you to make other living arrangements elsewhere
• D) demand payment of at least $100 but no more than $200 to clean up after himself

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Definitions:

Heart Rate

The frequency of cardiac contractions, often quantified as the number of beats occurring every minute.

Breathing Rate

The number of breaths taken per minute, an important vital sign reflecting respiratory health and metabolic demand.

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Domesticated feline animals kept as pets or for catching pests, known for their agility, independence, and playful behavior.

Sheep

A domesticated ruminant mammal, Ovis aries, kept as livestock for its wool, meat, and milk.