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.
Correct Answer:
Verified
Correct Answer:
Verified
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