5 d. (2 points) Continue to assume that the firm is assigned the property rights to pollute the river. What area represents the maximum total payment that the swim club would be willing to pay to reduce pollution to the socially efficient level? e. (2 points) Now assume instead that the swim club is assigned the property rights to the river. What area represents the minimum total payment the swim club would be willing to accept to allow the firm to pollute the river to the socially efficient level? f. (2 points) Continue to assume that the swim club has the property rights to the river. What area represents the maximum total payment that the firm would be willing to pay to pollute the water up to the socially efficient level?6 g. (2 points) Consider the properties necessary for the Coase Theorem to hold and the practicalities of bargaining. Would you expect a socially efficient outcome to be more likely when property rights were assigned to the swim club or to the firm? Explain your reasoning. cy impe ar is to 15 tons per week in total. asked to evaluate the staff proposals. TABLE 1 done week ) Firm 2 10 4 10 (6 points, 3 each part) Proposal A asslyas emissions reduction cording to the equi-marginal peiple to achieve the new overall ends Explain whet en equi-men phal reduction is and predict on level underW 2. (20 points, as indicated) Coase Theorem A firm pollutes a local river and causes damage to a river-swim club that is located downstream. The line MB represents the firm's Marginal Benefit from polluting (think of this curve as Mat in Callan and Thomas notation) and the line MC represents the Marginal Cost of the pollution damages to the swimmers (think of this curve as MEC in Callan and Thomas notation). State your answers to each of the following questions in terms of the areas A, B, C, D, E, and F. Firm Swim Club MB (polluter) MC (pollutee) A F B E C D avate oute Q* Water Pollution Full pollution Zero pollutionc. (2 points) Now consider the Coasian approach and assume that the firm is assigned the property rights to pollute the river. What area represents the minimum total payment the firm would be willing to accept to reduce water pollution to the socially efficient level