Econ MC

!@#$%^& owns a dog whose barking annoys !@#$%^&'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.

  1. 👍 1
  2. 👎 0
  3. 👁 358
  1. To answer this question, simply drop out of school and start up a terrible website, like me.

    1. 👍 0
    2. 👎 0
    posted by Ms. Sue

Respond to this Question

First Name

Your Response

Similar Questions

  1. Econ MC

    Dick owns a dog whose barking annoys Dick's neighbor Jane. Suppose that the benefit of owning the dog is worth $700 to Dick and that Jane bears a cost of $500 from the barking. Assuming Dick has the legal right to keep the dog, a

    asked by Econ on March 22, 2007
  2. Econ MC

    Dick owns a dog whose barking annoys Dick's neighbor Jane. Dick receives personal benefit from owning the dog, and Jane bears a cost of Dick's ownership of the dog. Assuming Dick has the legal right to keep the dog, which of the

    asked by Econ on April 17, 2007
  3. math for business and finance

    dick hercher borrowed $7,000 to travel to london. his loan is to be paid in 48 monthly installments of $190. at the end of 14 months, dick decides to pay off his loan. what is the final payoff dick will make?

    asked by barbara on January 8, 2013
  4. business math

    Dick Hercher borrowed $7,000 to travel to London. His loan is to be paid in 48months monthly installments of $190. at the end of 14 months, Dick ddecides to pay off his loan. What is the final payoff Dick will make?

    asked by tracie on August 31, 2012
  5. Algabra

    Dick is younger than Tom, but older than Harry. Their ages in years are consecutive odd integers. Dick's mother is three times as old as Dick, and she is also 13 years older than twice as old as Tom. How old are Harry, Dick, and

    asked by Andy on September 26, 2016
  6. Calculus

    On Dick's birthday, his brother Harry is seventeen years younger than three times Dick's age. The boys father, Tom, is twelve years older than twice Harry's age. If Dick is seven years younger than his brother, how many candles

    asked by Jas on February 12, 2008
  7. English

    Could someone tell me if the punctuation in this sentence is correct? We received a tour of the offices after which, we met in the conference room where Dick and Jane joined the group. Could someone tell me if the punctuation in

    asked by MJ on August 24, 2006
  8. AP-English

    what do the ''sea'', ''coffin'', doubloon'', and ''moby dick mean in the novel Moby Dick written by melville and suggest that the phantom of life is truly ungraspable?

    asked by yoselin on January 9, 2010
  9. math

    Dick has 10 puppies.sally has three times as many gold fish as dick.how many goldfish does sally have.

    asked by anymonys on October 6, 2015
  10. physics

    Tom & Dick are 25 m apart at rest. Tom accelerates at 5 m/s/s towards Dick. 0.21 sec later Dick accelerates 6 m/s/s towards Tom. Where do they meet, how fast is each traveling when they meet, and when do they meet?

    asked by Susan on October 5, 2011

More Similar Questions