A. Determine whether it is socially optimal for Taylor to rehearse in the dorm. B. If UP policy states that it is illegal for Taylor to rehearse in the dorm, will Taylor end up practicing there? What can Ariana do to try to stop Taylor? C. Suppose UP policy says it is legal for Taylor to rehearse in the dorm. i. How much is Ariana willing to pay Taylor to get her to stop?
Taylor rehearses her singing at the dorm of her friend, Carly. Rehearsing at the dorm saves her money because it costs Php 500 per hour to rent a rehearsal space at the UP College of Music. Unfortunately, singing in the dorm disturbs Carly's neighbor, Ariana, causing her to lose sleep. The value of an hour of Ariana's lost sleep is Php 600.
A. Determine whether it is socially optimal for Taylor to rehearse in the dorm.
B. If UP policy states that it is illegal for Taylor to rehearse in the dorm, will Taylor end up practicing there? What can Ariana do to try to stop Taylor?
C. Suppose UP policy says it is legal for Taylor to rehearse in the dorm.
i. How much is Ariana willing to pay Taylor to get her to stop?
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