Bob's Bee Emporium makes organic honey, which Bob sells at farmers' markets. The value of his Bee Emporium in its current location is $100,000. Unfortunately. Bob's bee's frequently fly to the neighboring property, Daisy's Daycare Center, and sting the small children, some of whom have allergic reaction to the bee stings. Daisy's Daycare Center business is worth $100,000, before the cost of treating any of the children, which the Daycare Center has to pay. The cost of treating the children for the bee stings is $15,000 per year. Relocating the Bee Emporium would reduce its value by $25,000. Relocating the Daycare Center would cost S10,000. The table below shows the value of the businesses under the above conditions. Daisy's Daycare Center Present Location Relocate Bob's Bee Emporium Present Location $85,000 $90,000 $100,000 $100,000 Relocate $100,000 $90,000 $75,000 $75,000 If the town imposed an injunction against Bob (meaning he would either have to shut down, relocate, negotiate a solution with Daisy), what would be the potential cooperative surplus? O $10,000 O $15,000 O $20.000 O $0

Bob's Bee Emporium makes organic honey, which Bob sells at farmers' markets. The value of his Bee Emporium in its current location is $100,000. Unfortunately. Bob's bee's frequently fly to the neighboring property, Daisy's Daycare Center, and sting the small children, some of whom have allergic reaction to the bee stings. Daisy's Daycare Center business is worth $100,000, before the cost of treating any of the children, which the Daycare Center has to pay. The cost of treating the children for the bee stings is $15,000 per year. Relocating the Bee Emporium would reduce its value by $25,000. Relocating the Daycare Center would cost S10,000. The table below shows the value of the businesses under the above conditions. Daisy's Daycare Center Present Location Relocate Bob's Bee Emporium Present Location $85,000 $90,000 $100,000 $100,000 Relocate $100,000 $90,000 $75,000 $75,000 If the town imposed an injunction against Bob (meaning he would either have to shut down, relocate, negotiate a solution with Daisy), what would be the potential cooperative surplus? O $10,000 O $15,000 O $20.000 O $0

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter5: Gross Income: Exclusions

Section: Chapter Questions

Problem 44P

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