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Cooperate Breach No Contract Hire 500 , -2000 , 2000 100 , 0 1000 Pam 100, 0 100 , 0 100, 0 Don't High-Cost Outcome

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Cooperate Breach No Contract Hire 500 , -2000 , 2000 100 , 0 1000 Pam 100, 0 100 , 0 100, 0 Don't High-Cost Outcome Sue Cooperate Breach No Contract Hire 500 , -2000 , 2000 100 , 0 -900 Pam 100, 0 100 , 0 100, 0 Don't a. What would efficiency considerations prescribe Pam and Sue to do in the high-cost and the low-cost outcomes? Explain. b. Rewrite the low-cost outcome table showing expectations damages. c. Suppose that a judge decides that if Sue breaches the contract, he will award Pam $2000 in compensatory damages and $4000 in punitive damages. Is this award efficient

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