Question
I am given: Marginal Cost of Homeowner is MC h = 3W Total cost to Homeowner is TC h =1.5W 2 Marginal Benefit (Profits) to
I am given:
Marginal Cost of Homeowner is MCh= 3W
Total cost to Homeowner is TCh =1.5W2
Marginal Benefit (Profits) to Gas company MBM = 0.5w + 50
Total Benefits is TBM = 0.25W2 +50W
The question is :
Suppose the homeowners have the property right. How many wells are drilled prior to entering negotiations?
What is the welfare for homeowners prior to entering negotiations?
What is the welfare for the gas firm prior to entering negotiations?
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Using R For Econometrics
Authors: Florian Heiss
1st Edition
1523285133, 9781523285136
