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Ringo loves playing rock ?n? roll music at high volume. Luciano loves opera and hates rock ?n? roll. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls. a. What is the externality here? b. What command-and-control policy might the landlord impose? Could such a policy lead to an inefficient outcome? c.Suppose the landlord lets the tenants do what- ever they want. According to the Coase theorem, how might Ringo and Luciano reach an efficient outcome on their own? What might prevent them from reaching an efficient outcome?
Paper#9256207 | Written in 27-Jul-2016Price : $16