Answer:
a. less than $350
Explanation:
Since Randall needs lots of practice to earn his share of the band’s profit, which will amount to $350.
Gretchen gets distracted by Randall’s trumpet playing but she needs to get her writing done to earn $570 for her current article.
If Randall owns the right to play his music and Gretchen needs to hire a lawyer to help her reach an agreement with Randall, then the price that Gretchen is willing to pay the lawyer will be less than $350
The reason for the price being less than $350 is based on the simple logic that Gretchen could as well pay Randall his share of the band’s profit, which will amount to $350, for him to stop disturbing her while she writes, than to pay a lawyer that amount and still spend extra time engaging the lawyer.
Answer:
A) less than $350
Explanation:
In economics, the Coarse Theorem for conflict resolutions argues that both parties should negotiate an economically optimal solution regardless of the original property rights.
In this case, Randall earns $350 for playing the trumpet, while Gretchen earns $570 for writing an article. Since both things are incompatible, Gretchen must find a way to convince Randall to stop playing the trumpet, either by paying him at least $350 (which equals his economic benefit of playing the trumpet) or by hiring a lawyer that costs her less than $350.
If hiring the lawyer costs more than $350, then Gretchen should just pay Randall.
