Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Management Posted 16 Oct 2017 My Price 3.00

abate pollution

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?

 

Answers

Maurice Tutor
(5)
Status NEW Posted 16 Oct 2017 02:10 PM My Price 3.00

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