This topic contains a solution. Click here to go to the answer

Author Question: Beth can earn 7,500 by renting out her house. However, her neighbor keeps a pet dog that chases away ... (Read 385 times)

KimWrice

  • Hero Member
  • *****
  • Posts: 579
Beth can earn 7,500 by renting out her house. However, her neighbor keeps a pet dog that chases away whoever comes looking for the house. Because her neighbor has a right to keep his pet untied, Beth is unable to find a tenant.
 
  What is the efficient outcome in this case if her neighbor values keeping his pet free for 1,500?

Question 2

In an English auction, the winner pays a price equal to ________.
 
  A) the value of the highest bid
  B) the value of the lowest bid
  C) his value for the good
  D) the value of the second-highest bid



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jojobee318

  • Sr. Member
  • ****
  • Posts: 298
Answer to Question 1

An efficient outcome in this case can be achieved if Beth strikes a private deal with her neighbor convincing him to keep his pet indoors. Because Beth can earn 7,500 by renting out her house and her neighbor values keeping her pet outdoors at 1,500, total well-being can be increased if Beth pays her neighbor an amount between 1,500 and 7,500 to keep his pet indoors.

Answer to Question 2

A




KimWrice

  • Member
  • Posts: 579
Reply 2 on: Jun 29, 2018
Great answer, keep it coming :)


nothere

  • Member
  • Posts: 324
Reply 3 on: Yesterday
Wow, this really help

 

Did you know?

Though “Krazy Glue” or “Super Glue” has the ability to seal small wounds, it is not recommended for this purpose since it contains many substances that should not enter the body through the skin, and may be harmful.

Did you know?

By definition, when a medication is administered intravenously, its bioavailability is 100%.

Did you know?

In women, pharmacodynamic differences include increased sensitivity to (and increased effectiveness of) beta-blockers, opioids, selective serotonin reuptake inhibitors, and typical antipsychotics.

Did you know?

Stroke kills people from all ethnic backgrounds, but the people at highest risk for fatal strokes are: black men, black women, Asian men, white men, and white women.

Did you know?

Asthma cases in Americans are about 75% higher today than they were in 1980.

For a complete list of videos, visit our video library