Barton and Statler are neighbors in an apartment complex in downtown Manhattan Barton is a concert pianist, and Statler is a poet working on an epic poem Barton rehearses his concert pieces on the baby grand piano in his front room, which is directly above Statler's study. The following matrix shows the monthly payoffs to Barton and Statler when Barton's front room is and is not soundproofed. The soundproofing will be effective only if it is installed in Barton's apartment Soundproofed Not soundproofed Gains to Barton $100/month $150/month Gains to Statler $120/month $80/month a. If Barton has the legal right to make any amount of noise he wants and he and Statler can negotiate with one another at no cost will Barton install and maintain soundproofing (Click to select) Barton Click to select) install and maintain soundproofing because Statler's cost of paying Barton to induce him to install soundproofing is smaller than Statler's gain from soundproofing Statler's cost of paying Barton to induce him to install soundproofing is larger than Statler's gain from soundproofing b. of State has the legal right to peace and quiet and can negotiate with Barton at no cost will Barton install and maintain soundproofing Click to select Barton Help Save & EX Statler's cost of paying Barton to induce him to install soundproofing is smaller than Statler's gain from soundproofing O Statler's cost of paying Barton to induce him to install soundproofing is larger than Statler's gain from soundproofing b. If Statler has the legal right to peace and quiet and can negotiate with Barton at no cost, will Barton install and maintain soundproofing? (Click to select Barton (Click to select) install and maintain soundproofing because O Barton's loss from installing soundproofing is larger than Barton's cost of paying off Statler to allow for him to make noise, Barton's loss from installing soundproofing is smaller than Barton's cost of paying off Statler to allow for him to make noise. c Does the attainment of an efficient outcome depend on whether Barton has the legal right to make noise, or Statler the legal right to peace and quiet? Yes, the socially efficient outcome is only reached it Barton has the legal right to make noise. No, either way, the socially efficient outcome is reached Yes the socially efficient outcome is only reached if Statler has the legal right to peace and quiet
