Multiple Choice
Zaria and Hannah are roommates. Zaria assigns a $30 value to smoking cigarettes. Hannah values smoke-free air at $15. Which of the following scenarios is a successful example of the Coase theorem?
A) Hannah offers Zaria $20 not to smoke.Zaria accepts and does not smoke.
B) Zaria pays Hannah $16 so that Zaria can smoke.
C) Zaria pays Hannah $14 so that Zaria can smoke.
D) Hannah offers Zaria $15 not to smoke.Zaria accepts and does not smoke.
Correct Answer:
Verified
Correct Answer:
Verified
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