Cameron lives in an apartment building and gets a $700 benefit from playing his stereo. Renee, who lives next door to Cameron and often loses sleep due to the music coming from Cameron's stereo, bears a $1,000 cost from the noise. At which of the following offers from Renee could both Renee and Cameron benefit from the silencing of Cameron's stereo?
A)$250
B)$550
C)$750
D)$1,020

Question

Quizplus · Accepted Answer

If Renee offers $750, Cameron would receive more than his $700 benefit from playing the stereo, and Renee would save $1,000 in costs, resulting in a net gain for both.

Cameron Lives in an Apartment Building and Gets a $700