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:

ROM

Read-Only Memory, a type of non-volatile storage medium that is used primarily in computers and electronic devices to store firmware or software that is rarely changed.

Primary Storage

The main storage area in a computer system, typically RAM, where the operating system, application programs, and data in current use are kept so they can be quickly reached by the computer's processor.

Secondary Storage

A type of computer storage separate from the main memory, used for keeping data and programs permanently, often referred to as external or auxiliary storage.

Primary Storage

The main storage of a computer where data is stored temporarily for quick access by the processor.