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Pleas help ?!?! Question 11 (Challenging). Suppose that Trevor is a resident of The Bad Place who enjoys hosting loud parties late at night. This

Pleas help ?!?!

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Question 11 (Challenging). Suppose that Trevor is a resident of The Bad Place who enjoys hosting loud parties late at night. This annoys Trevor's neighbour Chidi, who likes going to sleep early. Suppose that Trevor enjoys each additional night of partying at $100, while Chidi values a good night's sleep at $200. a) What is the socially efficient outcome in this situation? b) If there are no laws in The Bad Place limiting residents' behaviour, will Trevor host parties every night? 0) What transaction is taking place for this outcome to be realised? d) What happens if they need to pay a translator $150 in order to be able to communicate, as Chidi can only speak French? e) If Chidi believes that Trevor's enjoyment from partying is $250, what will outcome be? f) What is the new socially optimal outcome? 9) How will this outcome be achieved? h) What does this tell us about the requirements for Coase Theorem to realise the efficient outcome

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