1242EconomicsMedium
Roberto and Thomas live in a university hall of residence Roberto values playing loud music at a value of €100. Thomas values Pease and quiet at a value of €150. Which of the following statements is true?
AIt is efficient for Roberto to stop playing loud music only if Roberto has the property right to play loud music
BIt is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound
CIt is efficient for Roberto to stop playing loud music only if Thomas has the property right to peace and quiet
Dit is efficient for Roberto to continue to play loud music
Correct answer
B. It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound
Explanation
The correct answer is It is efficient for Roberto to stop playing loud music regardless of who has the property right to the level of sound.