Why should john and karl live together

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JOhn and Karl can live together in a two-bedroom apartment for $500 per month, or each can rent a single-bedroom apartment for $350 per month. Aside from the rent, the two would be indifferent between living together and living separately, except for one problem:John leaves dirty dishes in the sink every night. Karl would be willing to pay up to $175 per month to avoid John's dirty dishes. John, for his part, would be willing to pay up to $225 to be able to continue his sloppiness. Should John and Karl live together? If they do, will there be dirty dishes in the sink? Explain

Reference no: EM1360006

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