If negotiation costs are zero and she has the property rights to the airwaves, how loud will the music be played?
A)0
B)3
C)4
D)6

Name: If negotiation costs are zero and she has the property rights to the airwaves, how loud will the music be played? A)0 B)3 C)4 D)6
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Question

Quizplus · Accepted Answer

Since negotiation costs are zero and she has property rights, she can set the loudness at the level that maximizes her utility. Therefore, she will choose the highest level of loudness, which is 6.

If Negotiation Costs Are Zero and She Has the Property