Question

Lachlan has a Jacaranda growing in his yard One of the tree limbs is growing over into Dan's property. Dan does not like this and wants Lachlan to chop down the tree. Their respective benefits are shown below Keeping Tree Chopping Down Tree Gains to 1000 500 Lachlan ($) Gains to 100 728 Dan ($) Total ($) 1100 The total cost of negotiating to chop down the tree is $249. What is the maximum amount Dan could pay Lachlan to chop down the tree so as to cover the negotiation costs and still be better off by $1? Answer to the nearest whole number in dollars (with no decimal places, $ sign, spaces or commas)

Answer 1

Ans

The maximum amount is 728-100-248-1=351.That difference between benefits and negotiation costs. Also 100 benefits which are already obtained needs to be subtracted because they could be obtained even otherwise