What if the farmer has the right to clean water

Assignment Help Econometrics

Reference no: EM131132345

Suppose that a paper mill earns $400,000 when it pollutes a river, and that it can abate pollution at a cost of $80,000. The effects of pollution are confined to a single farmer, who earns $530,000 if the water is clean and $330,000 if it is polluted. Assume that bargaining is frictionless and that the parties will split the gains from any agreement equally. What agreement will the mill and the farmer negotiate if the mill has the right to pollute? What if the farmer has the right to clean water?

Reference no: EM131132345

Questions Cloud

Which ratio refines the quick and current ratio in analysis : In a case where an analysis of the company's liquidity is desired,- which ratio refines the quick and current ratio in the analysis?

Would it be possible to create such a market : Would it be possible to create such a market? If so how? If not, why not?

Explain the trend toward a consumer society : In what specific ways was Europe Americanized in the second half of the twentieth century? How do you explain the trend toward a consumer society?

Compare your results to process being developed at agency : Discuss how your agency determined a path to remedy the problem. Identify valid methods adopted by other facilities to address the same problem. Compare your results to the process being developed at your agency.

What if the farmer has the right to clean water : What agreement will the mill and the farmer negotiate if the mill has the right to pollute? What if the farmer has the right to clean water?

How you are going to appropriately secure hospital network : Using everything that we have learned throughout the semester explain me with enough details how you are going to appropriately and effectively secure the hospital network.

Emergence of socialism and marxism challenge liberalism : How did the emergence of socialism and Marxism challenge classical liberalism? What are principal postulates of Marxist socialism? Do they remain valid today?

What does it mean when longest states that policymaking : Evaluate how much influence interest groups have on agenda setting. Do you think lobbying and electioneering should have more or fewer restrictions? Why?

Does that rule make sense from the perspective : Does that rule make sense from the perspective of economic efficiency? Why or why not?

User Account

All Pages