Suppose that a mechanic owns a building and is renting part of the building's space to a library. Further suppose that because the mechanic is the owner, he has the right to make noise during the day while he fixes cars. While the library cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $350/month more than rent in the noisy building. The mechanic can adopt a new technology that eliminates the noise for $275/month. Given this situation, can the library find a private solution with the mechanic that will make both better off?

Since librarian is the person who is most affected by the noise made by mechanic work. And choosing other place will cost him $350 extra so therefore if librarian will share the most burden of $275 it will benefit both of them. In this case the librarian does not have to spend $350 and the mechanic will be having a noise free workstation.

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BenitoMarin BenitoMarin · Answer 2 · 2020-02-08T23:02:41+01:00

Answer:

The correct answer is letter "B": Yes, but there is only a range of payments that the library will pay the mechanic to make them both better off.

Explanation:

The library must analyze the benefit/cost of the possible solution for the noise problem. A library itself cannot provide a noisy atmosphere to readers. Moving the library to the next best building implies spending $350 monthly more for rent. However, the mechanic can eliminate the noise with a device that costs $275 per month. Thus, the library should share the expenses with the mechanic for the noise-elimination device to reduce the costs of having a noise-free environment obtaining the benefit desired.