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) .
-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:

Verified
Correct Answer:
Verified
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