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Assume That Your Roommate Is Very Messy

Question 100

Multiple Choice

Assume that your roommate is very messy.Suppose she gets a $100 benefit from being messy but imposes a $200 cost on you.The Coase theorem would suggest that an efficient solution would be for you to


A) pay your roommate at least $100 but no more than $200 to clean up after herself.
B) pay your roommate at least $201 to clean up after herself.
C) charge your roommate at least $100 to have you clean up after her.
D) charge your roommate at least $200 but no more than $300 to keep you from complaining about the mess.

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