Ask Question
15 January, 15:25

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.

+5
Answers (1)
  1. 15 January, 16:23
    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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers