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Author Question: You and your sister share a room. Your sister prefers sleeping with all windows closed, while you ... (Read 78 times)

gbarreiro

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on: Jun 29, 2018
You and your sister share a room. Your sister prefers sleeping with all windows closed, while you prefer sleeping with at least one window open to let in some fresh air.
 
  Since neither of you are willing to give up your own preferences, you end up fighting every night. Is there a possible solution to this problem if you value keeping your windows open at night for 100, while your sister values keeping the windows closed at night for 80?

Question 2

Which of the following inputs can be changed in the short run?
 
  A) Machinery
  B) Land owned
  C) Office Space
  D) Labor employed


Pswine

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Reply #1 on: Jun 29, 2018
Answer to Question 1

Because you value keeping the windows open at 100 while your sister values keeping windows closed at 80, an efficient solution is possible if you decide to pay her an amount between 80 and 100 as a compensation for keeping the windows open. The exact amount that you'll have to pay her will depend on your respective bargaining powers.

Answer to Question 2

D


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gbarreiro

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Reply #2 on: Jun 29, 2018
Thank you


Pswine

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Reply #3 on: Jun 29, 2018
No problemo


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