Assume that your roommate, linda, is very messy. suppose she gets a $100 benefit from being messy but imposes a $200 cost on you. what would the erd coase theorem suggest would be an efficient solution for you? a. to pay your roommate 590 to clean up after herself b. to pay your roommate at least $100 but no more than $200 to clean up after herself c. to pay your roommate at least $201 to clean up after herself d. to charge your roommate at least $100 to have you clean up after her

B) to pay your roommate at least $100 but no more than $200 to clean up after herself

Explanation:

According to the Coase theorem, you should work a solution that benefits both Linda and yourself. Since Linda's benefits for being messy = $100, and your costs for her being messy = $200, then you should offer Linda an amount of money that is between $100-$200 so that she cleans her mess.

The Coase theorem states that disputing parties should negotiate an economically optimal solution, regardless of what originated the problem or who had the property rights at the beginning.

In this case Linda is responsible for all the mess but it will not help you to just complain about it, instead you should find an economical solution to the problem.

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

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