Multiple Choice
Suppose that your roommate is very untidy. Suppose she/he gets a $100 benefit from being messy but imposes a $200 cost on you. (Assume that there are no regulations against untidiness in your living quarters.) The Coase Theorem would suggest that an efficient solution can be reached where:
A) you pay your roommate at least $100 but no more than $200 to clean up after her/himself
B) you pay your roommate at least $201 to clean up after her/himself.
C) you continue to live with your untidy roommate until you are able to make other living arrangements elsewhere.
D) your roommate pays you at least $100 to have you clean up after her/him.
Correct Answer:
Verified
Correct Answer:
Verified
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