Multiple Choice
Kate and Ali can live together a two-bedroom apartment for $600 per month, or they can each rent a one-bedroom apartment for $400 per month. Apart from the rent, they are indifferent between living together and living apart, except for one problem: Kate hates Ali's taste in music. Kate would be willing to pay up to $100 a month to avoid hearing Ali's music. Ali would give up listening to her music for no less than $300 per month. Which, if any, of the following ways of splitting the total monthly rent would induce them to live together?
A) Kate pays $150 per month and Ali pays $450 per month
B) Kate pays $250 per month and Ali pays $350 per month
C) Kate pays $375 per month and Ali pays $125 per month
D) There is no way to split the rent to induce them to live together
Correct Answer:
Verified
Correct Answer:
Verified
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