Posted by **Anonymous** on Saturday, March 17, 2007 at 6:41pm.

Dick owns a dog whose barking annoys Dick's neighbor Jane. Suppose that the benefit of owning

the dog is worth $500 to Dick and that Jane bears a cost of $700 from the barking. Assuming Dick

has the legal right to keep the dog, a possible private solution to this problem is that

a. Jane pays Dick $500 to get rid of the dog.

b. Dick pays Jane $650 for her inconvenience.

c. Jane pays Dick $650 to get rid of the dog.

d. There is no private solution that would improve

this situation.

a and c both seem right to me. Which one is correct?

From a practical standpoint, I think d. is the best answer.

In c, both gain. In a, Dick does not gain, but he does not lose. But Dick has no incentive to take the deal in a.

## Answer This Question

## Related Questions

- Econ MC - Dick owns a dog whose barking annoys Dick's neighbor Jane. Suppose ...
- Econ MC - Dick owns a dog whose barking annoys Dick's neighbor Jane. Dick ...
- math for business and finance - dick hercher borrowed $7,000 to travel to london...
- business math - Dick Hercher borrowed $7,000 to travel to London. His loan is to...
- Calculus - On Dick's birthday, his brother Harry is seventeen years younger than...
- Algabra - Dick is younger than Tom, but older than Harry. Their ages in years ...
- English - Could someone tell me if the punctuation in this sentence is correct? ...
- math - Dick has 10 puppies.sally has three times as many gold fish as dick.how ...
- physics - Tom & Dick are 25 m apart at rest. Tom accelerates at 5 m/s/s towards ...
- AP-English - what do the ''sea'', ''coffin'', doubloon'', and ''moby dick mean ...

More Related Questions