Assume Your Roommate Is Very Untidy

Multiple Choice

Assume your roommate is very untidy. According to campus policy, you have a right to live in an uncluttered apartment. Suppose she/he gets a $200 benefit from being untidy but imposes a $100 cost on you. The Coase Theorem would suggest an efficient solution can be reached where:

A) ​you continue to live with your messy roommate until you are able to make other living arrangements elsewhere.
B) ​your roommate stops her/his messy habits or you force her/him to move out.
C) ​you pay your roommate at least $100 but no more than $200 to clean up after (her) himself.
D) ​your roommate pays you at least $100 but no more than $200 for the right to be untidy (or to have you clean up after her/him) .