A prince picked a basketful of golden apples in the enchanted orchard. On his way home, he was stopped by a troll who guarded the orchard. The troll demanded payment of one-half the apples plus two more. The prince gave him the apples and set off again. A little further down the road he was stopped by a second troll guard. The troll demanded payment of one-half the apples plus two more. The price paid him and set off again. Just before leaving the enchanted orchard, a third troll stopped him and demanded payment of one-half the apples plus two more. The prince paid him and went sadly home with his two remaining apples. How many apples had the prince picked

Suppose the marginal damage and marginal benefit curves in a polluted neighborhood are md = p/3 and mb = 4 – p. also, suppose that transactions costs are low, so that the consumers and the firm can bargain. we saw that in this case, the socially-optimal level of pollution is achieved. start by computing the socially-optimal p. then, for each of the following cases, compute the amount of money transferred through the bargaining process, and indicate who pays whom (i.e., whether consumers pay the firm, or vice versa). also, compute the gains to each party relative to the status quo (i.e., the starting point of the bargaining process).a)consumers have the right to clean air; firm is dominant in the bargaining process.b)consumers have the right to clean air; consumers are dominant in the bargaining process.c)firm has the right to pollute; firm is dominant in the bargaining process.d)firm has the right to pollute; consumers are dominant in the bargaining proces