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Assume That Your Roommate Is Very Messy

Question 440

Multiple Choice

Assume that your roommate is very messy. According to campus policy, you have a right to live in an uncluttered apartment. Suppose she gets an $80 benefit from being messy but imposes a $60 cost on you. The Coase theorem would suggest that an efficient solution would be for your roommate to


A) stop her messy habits or else move out.
B) pay you at least $60 but less than $80 to live with the clutter.
C) continue to be messy and force you to move out.
D) demand payment of at least $60 but no more than $80 to clean up after herself.

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