Multiple Choice
Assume that your housemate is very messy.(There is no law against being messy.) Suppose she gets a $100 benefit from being messy but imposes a $200 cost on you.The Coase theorem would suggest that an efficient solution would be for you to:
A) pay your housemate at least $100 but no more than $200 to clean up after herself
B) pay your housemate at least $201 to clean up after herself
C) charge your housemate at least $100 to have you clean up after her
D) charge your housemate at least $200 but no more than $300 to keep you from complaining about the mess
Correct Answer:
Verified
Correct Answer:
Verified
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