What might prevent from reaching an efficient outcome

Assignment Help Microeconomics

Reference no: EM13234047

Pedro loves playing rock music at high volumes. Mario loves opera and hates rock. 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 ineffecient outcome?

c. Suppose the landlord lets the tennants do whatever they want. According to the Coase theorem, how might Pedro and Mario reach an efficient outcome on their own? What might prevent them from reaching an efficient outcome?

Reference no: EM13234047

Questions Cloud

Explain the haber-bosch process and nitrogen and hydrogen : In the Haber-Bosch Process, nitrogen and hydrogen gas are reaceted under high temperature (500 C) and pressure (200 atm) to form ammonia gas (NH3) according to the equation

How many cups of each food will be consumed daily : Suppose Bill is on a low-carbohydrate diet. He can eat only three foods: Rice Krispies, cottage cheese, and popcorn. The marginal utilities for each food are tabulated below. Bill is allowed only 167 grams of carbohydrates daily. Rice Krispies, co..

Administering government when absent from local areas : Write a short essay comparing how successful the comparative Asian empires were in administering government when absent from local areas. The above information should help you put this together

Propose a mechanism for 1-butyl-bisulfate reaction : Once 1-butyl-bisulfate is formed, the 1-butanol can act as a nucleophile to form dibutylether. Propose a mechanism for that reaction

What might prevent from reaching an efficient outcome : Suppose the landlord lets the tennants do whatever they want. According to the Coase theorem, how might Pedro and Mario reach an efficient outcome on their own What might prevent them from reaching an efficient outcome

Describe how employing a large number of new workers : Describe how employing a large number of new workers requires strategic recruiting planning and operational efforts, and discuss what aspects might be different in smaller firms.

Fading dream of the inevitable marxist utopia is the : A recent example in China of the fading dream of the "inevitable" Marxist utopia is the

What is a process : What is a "process"? Explain from beginning to end the supplier - customer relationship both internally and externally of the organization and why it is important to understand the existence of this relation in producing the final product/service ..

State a mechanism for the conversion : Write a mechanism for the conversion of 1-butanol to 1-butyl bisulfate, indicating the flow of electrons.

User Account

All Pages