Question

QUESTION 9 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: Tree Chopping Down Tree 1000 100 1100 Gains to Lachlan (S) 500 Gains to Dan (S) Total (S) 745 What is the maximum amount that Dan would be willing to pay Lachlan to chop down the tree 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

Answer:

Maximum amount Dan would like to pay= -Dan gain if keeping tree+Dan gain if chopping tree-1=-100+745-1=$644