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nakungth nakungth
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Posts: 1175
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6 years ago
Suppose your neighbor likes to repair motorcycles in his front yard during evenings and on weekends, and he earns $400 per week from this work.  However, the sight of piles of greasy motorcycle parts and the additional noise and traffic caused by his customers reduces your value of living in this neighborhood by $500 per week.  If your neighbor has a right to operate this business, how can you achieve the efficient outcome?
A) You cannot afford to pay him enough money to stop working on motorcycles, and he continues to operate the business.
B) You pay him some value between $0 and $100 to close his home business.
C) You pay him some value between $400 and $500 to close his home business.
D) You pay him at least $500 to close his home business.
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Microeconomics

Microeconomics


Edition: 8th
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Bart_argBart_arg
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6 years ago
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