I am given:
Marginal Cost of Homeowner is MCh= 3W
Total cost to Homeowner is TCh =1.5W2
Marginal Benefit (Profits) to Gas company MBM = 0.5w + 50
Total Benefits is TBM = 0.25W2 +50W
The question is :
Do you think that Coasian bargaining is likely to achieve the pareto efficient outcome in this case? Why or Why not?
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