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QUESTION 8 20 points Save Answer Suppose a factory in Chicago is polluting the area and causing $30,000 worth of environmental damage. Citizens can eliminate
QUESTION 8 20 points Save Answer Suppose a factory in Chicago is polluting the area and causing $30,000 worth of environmental damage. Citizens can eliminate the pollution for a price of $25,000 while the company could eliminate the pollution by paying $20,000. If we assign the property rights to the company, what is the predicted outcome and the dollar transfer between the two parties? What if we assign the property rights to the citizens? What is the predicted outcome and the dollar transfer between the two parties? Assume both parties have equal bargaining power
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