owns a dog whose barking annoys 's neighbor Jane. Suppose that the benefit of owning
the dog is worth $500 to and that Jane bears a cost of $700 from the barking. Assuming
has the legal right to keep the dog, a possible private solution to this problem is that
a. Jane pays $500 to get rid of the dog.
b. pays Jane $650 for her inconvenience.
c. Jane pays $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, does not gain, but he does not lose. But has no incentive to take the deal in a.
To answer this question, simply drop out of school and start up a terrible website, like me.
The correct answer is c. Jane pays $650 to get rid of the dog.
In this scenario, Jane would pay to address the issue by removing the source of annoyance, which is the dog. This solution ensures that both parties are better off than before. receives compensation for giving up the dog, while Jane benefits from the elimination of the barking noise.
To determine the correct answer, let's analyze the given options in relation to the situation described:
a. Jane pays $500 to get rid of the dog.
b. pays Jane $650 for her inconvenience.
c. Jane pays $650 to get rid of the dog.
d. There is no private solution that would improve this situation.
Since has the legal right to keep the dog, it means that he is not obligated to take any actions or make any adjustments to satisfy Jane's concerns unless he chooses to do so voluntarily. Additionally, the question states that the benefit of owning the dog is worth $500 to , indicating that he values having the dog and would not be motivated to get rid of it without a more significant compensation.
Option a suggests that Jane pays $500, which would compensate for potentially getting rid of the dog but does not offer any additional gain to him. This outcome may not be attractive enough for to willingly give up his dog.
Option b proposes paying Jane $650 for her inconvenience. While this option alleviates Jane's concerns, it does not address 's preference for keeping the dog. Moreover, the amount of $650 might not be sufficient compensation for to part ways with his pet.
Option c suggests that Jane pays $650 to get rid of the dog. In this scenario, both parties seem to benefit. Jane gets relief from the dog's barking, and receives compensation that exceeds the value he places on owning the dog. This option aligns with both parties' interests and provides a potential solution.
Option d states that there is no private solution that would improve the situation. However, as mentioned above, option c presents a possible private solution that could resolve the issue to some extent.
Considering all these factors, the most appropriate answer would be c. Jane pays $650 to get rid of the dog, as it offers a possible private solution that satisfies both parties involved.