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Darnell loves playing rock 'n' roll music at high volume. Jacques loves opera and hates rock 'n' roll. Unfortunately, they are next-door neighbors in an

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Darnell loves playing rock 'n' roll music at high volume. Jacques loves opera and hates rock 'n' roll. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls. In this case, imposes a externality on his neighbor in the form of noise pollution. Why might a command-and-control policy that forbids music to be played above a certain decibel level lead to an inefficient outcome? O An efficient outcome can be achieved only if everyone can do what they love. O It is unfair because such policy would restrict Darnell's activity but not Jacques's. O Darnell playing his music loudly does not do any harm if Jacques is not home. Suppose the landlord lets the tenants do whatever they want. True or False: According to the Coase theorem, Darnell and Jacques can never reach an agreement without a third party assisting in the negotiations. True False

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