Lachlan has a Jacaranda growing in his garden.One of the tree branches is growing towards Dan's property.Dan

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Lachlan has a Jacaranda growing in his garden. One of the tree branches is growing towards Dan's property. Dan doesn't like this and he wants Lachlan to cut down the tree. Their respective benefits are shown below:

Caring for a tree Cutting down a tree

Earnings for Lachlan ($) 1000 500

Profits to Dan ($) 100 1,006

Total ($) 1100

What amount would Dan have to pay Lachlan so that they would each receive half of the total additional profits from cutting down the tree?

Related Book For answer-question

Modern Principles of Economics

ISBN: 978-1429278393

3rd edition

Authors: Tyler Cowen, Alex Tabarrok

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Posted Date: Mar 17, 2024 04:19 AM

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Lachlan has a Jacaranda growing in his garden.One of the tree branches is growing towards Dan's property.Dan

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The total additional profits from cutting down the tree is the sum of the profit... View the full answer

Modern Principles of Economics

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