Answered

Get the answers you need at Westonci.ca, where our expert community is dedicated to providing you with accurate information. Get quick and reliable answers to your questions from a dedicated community of professionals on our platform. Discover in-depth answers to your questions from a wide network of professionals on our user-friendly Q&A platform.

Consider two college roommates, one who smokes and one who does not. The smoker wishes to smoke in the room, and the nonsmoker dislikes smoking in the room. Suppose the smoker would be willing to pay $500 to be allowed to smoke in the room during the semester, and the nonsmoker would be willing to pay $600 to keep the room smoke-free. What should happen in the socially optimal outcome

Sagot :

anthougo

Answer:

The socially optimal outcome is that there will be no smoking in the room.

Explanation:

The above answer is  based on the willingness of the nonsmoker to ensure that no smoking happens in the room.  For instance, the nonsmoker can pay off the smoker, paying $600 to dissuade him from smoking in the room. On the contrary, the smoker is only willing to cough out $500, which is less than $600, in order to smoke in the room. Under social optimality, the nonsmoker wins this game.

We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Stay curious and keep coming back to Westonci.ca for answers to all your burning questions.