Business, 07.08.2021 03:10 bkimswift7

The dog-walkers value walking their dogs at $400 per month. The neighborhood association doesn't like the barking dogs in the neighborhood, and values peace-and-quiet at $320 per month. The socially optimal outcome is that the dog-walkers are allowed to walk their dogs, but the law states that the neighborhood association has the right to peace-and-quiet. Transactions costs for these two groups to meet and discuss is $30. According to the Coase Theorem, can the socially optimal outcome be reached? a. No, the neighborhood association will not agree to barking dogs.
b. No, the dog-walkers do not have enough to compensate the neighborhood association
c. Yes, the dog-walkers can pay the association at least $201 and cover the transactions costs
d. No, the transactions costs are too high
e. Yes, the dog-walkers can pay the association at least $301 and cover the transactions costs

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The dog-walkers value walking their dogs at $400 per month. The neighborhood association doesn't lik...

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