Figure 71: Angus and Dudley Are Neighbors

Multiple Choice

Figure 7.1: Angus and Dudley are neighbors. Angus loves to play the bagpipes and earns a living recording his bagpipe music for use as background music in the movies. If Angus does not earn a living playing bagpipes, his only other talent is mopping floors. Dudley is a linguist whose clients are actors wishing to perfect accents for upcoming roles. When Angus plays his bagpipes, Dudley and his clients have trouble listening to each other, and this has severely affected Dudley's business. Presently, there is no city ordinance against playing loud music. The payoff matrix showing the daily payoffs to each player is shown above.
-Refer to Figure 7.1. Suppose the city passes an ordinance banning loud music, and this directly impacts Angus's legal ability to play his bagpipes. The benevolent social planner would choose an outcome where Angus ________ and Dudley ________.

A) plays the bagpipes; does nothing
B) plays the bagpipes; calls the police
C) mops floors; does nothing
D) mops floors; calls the police