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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