Multiple Choice
Curly and Moe are considering living alone or being roommates and splitting the rent for the next twelve months.If they live alone,they each rent a one bedroom,one bath apartment for $500 per month,while if they are roommates,they can split a two bedroom,one bath apartment for $800 per month.The one difficulty they have is that Moe snores very loudly.Curly estimates the cost of poor sleep due to Moe's snoring at $150 per month.Moe could obtain a snore-eliminating device for $50 per month.
Refer to the information given above.The least costly solution to the externality present in this situation is for:
A) Curly to endure Moe's snoring.
B) both to live alone.
C) Moe to eliminate his snoring.
D) Moe to pay Curly for his discomfort.
Correct Answer:

Verified
Correct Answer:
Verified
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