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Please answer this question 0.6 For a particular product y. the average cost of production (AC) is given by the expression: AC =20+ 15y .

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0.6 For a particular product y. the average cost of production (AC) is given by the expression: AC =20+ 15y . The demand for goody is: P =152-0.5y. Assume that the production ofy also creates an external effect for its neighbors. the average value of which is given by the expression: E =12+0.75q. a) Assume that the rm has the property rights. In the absence of an agreement with its neighbors. what level of output would it want to produce? Suppose that the neighbors negotiate with the rm. To what level of output would the negotiations lead? What is the minimum payment that the neighbors must make to the rm to achieve this change in output? What is the maximum payment

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