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My neighborsare college students who sometimes have late-night parties. Assume that the nuisance cost of these parties to the rest of the neighborhood exceeds the joy the students have in partying hearty.
a. What are the conditions of an efficient resolution to this dispute?
b. If there is a law restricting late-night parties then will the college students do? Can there be an efficient outcome?
c. If there is a law allowing parties, then what could the neighbors do? Can there be an efficient outcome?
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