Question
Lachlan has a Jacaranda growing in his garden.One of the tree branches is growing towards Dan's property.Dan doesn't like this and he wants Lachlan to
Lachlan has a Jacaranda growing in his garden. One of the tree branches is growing towards Dan's property. Dan doesn't like this and he wants Lachlan to cut down the tree. Their respective benefits are shown below:
Caring for a tree Cutting down a tree
Earnings for Lachlan ($) 1000 500
Profits to Dan ($) 100 1,006
Total ($) 1100
What amount would Dan have to pay Lachlan so that they would each receive half of the total additional profits from cutting down the tree?
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Modern Principles of Economics
Authors: Tyler Cowen, Alex Tabarrok
3rd edition
1429278390, 978-1429278416, 1429278412, 978-1429278393
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