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I am given: Marginal Cost of Homeowner is MC h = 3W Total cost to Homeowner is TC h =1.5W 2 Marginal Benefit (Profits) to Gas company MB M = 0.5w +...
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?