Solved

Bob Lives in a Residential Neighbourhood That Takes Pride on Well-Groomed

Question 146

Multiple Choice

Bob lives in a residential neighbourhood that takes pride on well-groomed lawns.Bob's neighbours find that the marginal benefit of someone else's well-groomed lawn is $10.Bob,however,receives the same net benefit from an unkempt lawn as a well-groomed lawn: zero (an unkempt lawn looks bad but costs nothing;a well groomed lawn looks nice but is costly) . Bob lives in a residential neighbourhood that takes pride on well-groomed lawns.Bob's neighbours find that the marginal benefit of someone else's well-groomed lawn is $10.Bob,however,receives the same net benefit from an unkempt lawn as a well-groomed lawn: zero (an unkempt lawn looks bad but costs nothing;a well groomed lawn looks nice but is costly) .   -Refer to the information above.Suppose that Bob knows that his neighbours value his lawn being well groomed more than he does and demands $15 from them.The neighbours will A)  choose to pay him $15. B)  stop the negotiations. C)  choose to pay him the $15: $10 now and $5 later. D)  offer $9 as a final offer. E)  hope that he moves.
-Refer to the information above.Suppose that Bob knows that his neighbours value his lawn being well groomed more than he does and demands $15 from them.The neighbours will


A) choose to pay him $15.
B) stop the negotiations.
C) choose to pay him the $15: $10 now and $5 later.
D) offer $9 as a final offer.
E) hope that he moves.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions