Question

your college roommate has the right to practice her tuba during the day. you, however, find that studying during the day is most conducive to good grades, and her tuba-playing makes it difficult for you to concentrate. you make a deal with your roommate: you will clean the dorm room once a week if she will practice her tuba at other times or elsewhere. this is an example of

Answer 1

Since you made a deal with your roommate that you will clean the dorm room once a week if she will practice her tuba at other times or elsewhere. This is an example of Coase theorem.

How does the coase theorem work?

Two roommates in the situation must come up with a personal resolution. They may also go to the authorities if they are unable to do so.

The first pupil is now permitted to perform on the tuba. The other pupil also has the right to study.

Therefore, they must come to a private solution without imposing too many transaction costs in order for both to benefit.

A solution might not be found if the expenses involved are too great. We have a solution that is acceptable to both parties if the provided answer, as in the question, is appropriate for both.

In this instance, the offered contract seems to be reasonable in price and agreeable to all parties.

Read more on the Coase theorem here: https://brainly.com/question/6286541

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