Part 1: Suppose that a candy maker owns a building and is renting part of the building's space to a doctor

Subject:EconomicsPrice:2.86 Bought15

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Part 1:

Suppose that a candy maker owns a building and is renting part of the building's space to a doctor. Further suppose that because the candy maker is the owner, he has the right to make noise during the day while he makes candy. While the doctor cannot insist on a quiet environment, the doctor could move to a quieter building. However, rent in the next best building is $300/month more than rent in the noisy building. The candy maker can adopt a new technology that eliminates the noise for $225/month. Given this situation, can the doctor find a private solution with the candy maker that will make both better off?

Part 2:

What is the minimum and maximum payment the doctor would make to the candy maker to get the doctor to install the noise-reducing equipment? NOTE: Round your answers to the nearest dollar.