Nimrah has a pet parrot that gives her a benefit (expressed in dollars) of $200. The parrot's squawking imposed a negative externality on Haya of $100. Nimrah has theright to have pets, however noisy, in the house. Assume they can bargain costlessly and enforce any agreement they come up with. Which solution below increases totalsurplus?O Haya pays Nimrah $100 and Nimrah finds another home for the parrot.O Nimrah keeps the parrot and pays Haya $200.O Haya pays Nimrah $200 and Nimrah finds another home for the parrot.O Nimrah keeps the parrot and pays Haya $100.O It is not possible to increase total surplus with payments.

It is explained that the pet parrot is providing a benefit of 200 to Nimrah, and the pet parrot is…

Nimrah has a pet parrot that gives her a benefit (expressed in dollars) of $200. The parrot's squawking imposed a negative externality on Haya of $100. Nimrah has the ight to have pets, however noisy, in the house. Assume they can bargain costlessly and enforce any agreement they come up with. Which solution below increases total curplus? O Haya pays Nimrah $100 and Nimrah finds another home for the parrot. O Nimrah keeps the parrot and pays Haya $200. O Haya pays Nimrah $200 and Nimrah finds another home for the parrot. O Nimrah keeps the parrot and pays Haya $100. O It is not possible to increase total surplus with payments.

Nimrah has a pet parrot that gives her a benefit (expressed in dollars) of $200. The parrot's squawking imposed a negative externality on Haya of $100. Nimrah has the ight to have pets, however noisy, in the house. Assume they can bargain costlessly and enforce any agreement they come up with. Which solution below increases total curplus? O Haya pays Nimrah $100 and Nimrah finds another home for the parrot. O Nimrah keeps the parrot and pays Haya $200. O Haya pays Nimrah $200 and Nimrah finds another home for the parrot. O Nimrah keeps the parrot and pays Haya $100. O It is not possible to increase total surplus with payments.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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