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Assignment help 552

Suppose that a mechanic owns a building and is renting part of the building’s space to a library. Further suppose that because the mechanic is the owner, he has the right to make noise during the day while he fixes cars. While the library cannot insist on a quiet environment, it could move to a quieter building. However, rent in the next best building is $250/month more than rent in the noisy building. The mechanic can adopt a new technology that eliminates the noise for $175/month. Given this situation, can the library find a private solution with the mechanic that will make both better off?


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