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Please help to figure out this question, thanks. This is the whole question. 1. Suppose rents are R. Expected rents are EA : pAR a:

Please help to figure out this question, thanks. This is the whole question.

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1. Suppose rents are R. Expected rents are EA : pAR a: to A and EB : pBR y to B. (a) Suppose the probability A Wins is p4 = (2$)/(2$ + 3;) while the probability B Wins is p3 = y/(2LI: | y), where J: and y are expenditures to win the rentJ respectively by A and B. Solve for a: and y and solve social costs to get R. (b) Compare this With the case Where pA : m/ (:1: | y) and p3 : y/(zc | g). which is better for society and Why? Explain

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