Multiple Choice
Assume that your housemate is very messy.Suppose he gets a $200 benefit from being messy but imposes a $300 cost on you.The Coase theorem would suggest that an efficient solution would be:
A) for you to tell him to stop his messy habits or force him to move out
B) for you to pay your housemate at least $200 but less than $300 to clean up
C) for him to continue to be messy and force you to make other living arrangements elsewhere
D) for you to demand payment of at least $200 but no more than $300 to clean up after him
Correct Answer:
Verified
Correct Answer:
Verified
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