Multiple Choice
Assume that your housemate is very messy. Suppose he gets a $200 benefit from being messy but imposes a $100 cost on you. The Coase theorem would suggest that an efficient solution would be for your housemate to:
A) stop his messy habits or force him to move out
B) pay you at least $100 but less than $200 to live with the clutter
C) continue to be messy and force you to make other living arrangements elsewhere
D) demand payment of at least $100 but no more than $200 to clean up after himself
Correct Answer:
Verified
Correct Answer:
Verified
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