Ask Question
6 July, 03:33

Betty's cat causes Suzy to sneeze. Betty values her cat's companionship at $300 per year. The cost to Suzy of tissues and her allergy medication is $350 per year. Based on the Coase theorem,

(A) Betty should pay Suzzy $350 for tissues and allergy medication.

(B) Suzy should pay Bety $325 to give away her cat.

(C) Betty should pay Suzy $400 so that she may keep her cat.

(D) Suzy should move.

+4
Answers (1)
  1. 6 July, 03:58
    0
    (B) Suzy should pay Bety $325 to give away her cat.

    Explanation:

    Based on the Coase theorem, Suzy should pay Bety $325 to give away her cat.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Betty's cat causes Suzy to sneeze. Betty values her cat's companionship at $300 per year. The cost to Suzy of tissues and her allergy ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers