Curly and Moe are considering living alone or being roommates and splitting the rent for the next twelve months. If they live alone, they each rent a one bedroom, one bath apartment for $500 per month, while if they are roommates, they can split a two bedroom, one bath apartment for $800 per month. The one difficulty they have is that Moe snores very loudly. Curly estimates the cost of poor sleep due to Moe's snoring at $150 per month. Moe could obtain a snore-eliminating device for $50 per month. The actual monthly gain in surplus to Curly and Moe from living together after addressing the snoring problems in the least costly way is:
A)$200.
B)$150.
C)$100.
D)$50.

Question

Quizplus · Accepted Answer

It would cost Moe $50 per month to stop the snoring, so his total rent is $450, or $50 less than he would have to pay living alone (which he would have to do if didn't stop the snoring). Curly saves $100 in rent by sharing with Moe.

Curly and Moe Are Considering Living Alone or Being Roommates