Roberto and Thomas share a university dormitory. Roberto values playing loud music at €100, while Thomas values peace and quiet at €150. Which statement accurately reflects the efficient outcome?

Show Answers

Roberto should cease playing loud music to maximize efficiency, no matter who holds the right to control noise levels.Roberto continuing to play loud music is the efficient choice.Roberto should stop playing loud music only if Thomas owns the right to maintain peace and quiet.Roberto should stop playing loud music solely if he possesses the right to play loud music.None of the above statements are correct.

Explanation

Since Thomas values peace and quiet (€150) more than Roberto values loud music (€100), it is efficient for Roberto to stop playing loud music regardless of who holds the property rights. This outcome maximizes total value.