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Business, 19.06.2020 18:57 sajasolo3467

Your neighbor never mows her lawn. You don’t have any legal right to force her to mow, but the mess in her front yard is making your neighborhood unsightly and reducing the value of your house. This is especially problematic, because you are planning on selling your house this summer. The reduction in the value of your house is $5,000, and the value of her time to mow the lawn once a week is $1,000. Suppose you offer her a deal in which you pay her $3,000 to mow. How does this deal affect surplus?

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Your neighbor never mows her lawn. You don’t have any legal right to force her to mow, but the mess...
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