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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Question
Sam and John are neighbors. Sam has a tree in his backyard whose roots are beginning to break the plumbing lines to John’s house. Suppose the tree's benefit is worth $750 to Sam, and John is willing to pay up to $1200 to protect his plumbing lines. A possible private solution is that: choose from the answers below
Group of answer choices
a. Sam pays $1000 to John to repair his plumbing lines.
b. Sam pays $1150 to John to repair his plumbing lines.
c. John pays Sam $1300 to cut down the tree.
d. John pays Sam $1100 to cut down the tree
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