Suppose that a candy maker owns a building and is renting part of the building's space to a doctor. Further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. While the doctor cannot insist on a quiet environment, the doctor could move to a quieter building. However, rent in the next best building is $250/month more than rent in the noisy building. The candy maker can adopt a new technology that eliminates the noise for $175/month.
(a) Given this situation, can the doctor find a private solution with the candy maker that will make both better off?
(b) What is the minimum and maximum payment the doctor would make to the candy maker to get the doctor to install the noise-reducing equipment? NOTE: Round your answers to the nearest dollar.
Answers: 3
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Select the correct answers. mila is at a flea market. she has $50 in her wallet. she decides that she will spend $15 on jewelry, $20 on a pair of jeans, $5 on a t-shirt, and $10 on something to eat. she likes a one-of-a-kind t-shirt, but the seller is not ready to sell it for less than $8. she thinks of five ways to deal with this situation. which two choices indicate a trade-off?
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Jennifer purchased a house in a brand new development in the outskirts of town. when her house was built, the nearest fire department was nearly 20 miles away. as her neighborhood developed, the density of the community called for a new fire department 1.5 miles away. what effect will the new fire station have on her homeowners insurance premium? a. a new fire department will be more demanding on local taxes. her annual premium will go up. b. the location of a fire department has no bearing on the value of her house. her annual premium will stay the same. c. the new fire department will reduce the risk of financial loss in her home. her annual premium should decrease. d. with a fire department so close (less than 5 miles), financial risk on jennifer’s home practically disappears. she will not need to pay insurance anymore.
Answers: 1
Suppose that a candy maker owns a building and is renting part of the building's space to a doctor....
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