Part 1:

Suppose that acandy makerowns a building and is renting part of the building's space to adoctor. Further suppose that because thecandy makeris the owner, he has the right to make noise during the day while hemakes candy. While thedoctorcannot insist on a quiet environment,the doctorcould move to a quieter building. However, rent in the next best building is $300/month more than rent in the noisy building. Thecandy makercan adopt a new technology that eliminates the noise for $225/month. Given this situation, can thedoctorfind a private solution with thecandy makerthat will make both better off?

Part 2:

What is the minimum and maximum payment thedoctorwould make to thecandy makerto getthe doctorto install the noise-reducing equipment? NOTE: Round your answers to the nearest dollar.