Business, 16.12.2019 23:31 doris8051

Kate and ali can live together in a two-bedroom apartment for $600 per month, or they can each rent a one-bedroom apartment for $400 per month. apart from the rent, they are indifferent between living together and living apart, except for one problem: kate hates ali's taste in music. kate would be willing to pay up to $100 a month to avoid hearing ali's music. ali would give up listening to her music for no less than $300 per month. which, if any, of the following ways of splitting the total monthly rent would induce them to live together a. kate pays $150 per month and ali pays $450 per month

b. kate pays $250 per month and ali pays $350 per month

c. kate pays $375 per month and ali pays $125 per month

d. there is no way to split the rent to induce them to live together

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Kate and ali can live together in a two-bedroom apartment for $600 per month, or they can each rent...

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