document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=672249>Question 672249</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Groucho and Harpo work together in the same office. Groucho smokes; Harpo hates smoke. <BR>\n" );
document.write( "Groucho currently smokes 12 cigars per day. He faces marginal costs (withdrawal pains) of <BR>\n" );
document.write( "reducing smoking equal to $x where x is the number of cigars reduced (not smoked). In other <BR>\n" );
document.write( "words, Groucho’s marginal cost of smoke abatement is: MC = x. Harpo receives marginal <BR>\n" );
document.write( "benefits (reduced discomfort and improved health) equal to $(12-x) when Groucho reduces <BR>\n" );
document.write( "his cigar smoking. In other words, Harpo’s marginal benefit from smoke abatement is: <BR>\n" );
document.write( "MB = 12-x . In addition to reducing the number of cigars smoked in the office, it is possible <BR>\n" );
document.write( "to rent an air purifier that reduces smoke in the air by 50% for $10 per day. It is also possible <BR>\n" );
document.write( "to rent a separate office for Harpo so he does not have to breathe any smoke for $40 per day.  \r<BR>\n" );
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document.write( "a. Draw a diagram showing the marginal costs and benefits of pollution reduction with the <BR>\n" );
document.write( "number of cigars reduced on the horizontal axis. Use this diagram to determine the <BR>\n" );
document.write( "efficient number of cigars assuming the air purifier and office rentals are not allowed.<BR>\n" );
document.write( "b. Suppose instead that the air purifier is installed. What is the efficient number of cigars <BR>\n" );
document.write( "now? (Hint: the new marginal benefit curve is: MB =0.5 (12-x).<BR>\n" );
document.write( "c. Suppose that either option (air purifier or office rental) is allowed. What is the most <BR>\n" );
document.write( "efficient outcome: air purifier rental, office rental, or neither? <BR>\n" );
document.write( "d. What would be the outcome (number of cigars smoked, if any; air purifier or office <BR>\n" );
document.write( "rental, if any) if Groucho and Harpo’s boss were to declare the office a non-smoking area <BR>\n" );
document.write( "but allow them to negotiate a mutually agreeable solution? What would happen if <BR>\n" );
document.write( "Groucho were granted the right to smoke and then negotiations were permitted? (Hint: if <BR>\n" );
document.write( "you properly invoke the Coase Theorem you do not need to perform any additional <BR>\n" );
document.write( "calculations to answer these two questions). \r<BR>\n" );
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document.write( "Here is what I did: <BR>\n" );
document.write( "a. <BR>\n" );
document.write( "MC = MB<BR>\n" );
document.write( "MC = x<BR>\n" );
document.write( "MB = 12-x\r<BR>\n" );
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document.write( "so: x = 6 cigars\r<BR>\n" );
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document.write( "b. 6-0.5x = x<BR>\n" );
document.write( "x = 4 cigars\r<BR>\n" );
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document.write( "c. Air purifier 50% costs: $10\r<BR>\n" );
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document.write( "MB = integral 6 to 0 (12-x) plus integral 12 to 0 (6-0.5x).<BR>\n" );
document.write( "Net benefit = 63\r<BR>\n" );
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document.write( "but neither.\r<BR>\n" );
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document.write( "d. NO IDEA.\r<BR>\n" );
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document.write( "Please help!\r<BR>\n" );
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document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #417872 by </B><A HREF=/tutors/aboutme.mpl?userid=MathLover1><B>MathLover1(20849)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=MathLover1><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=MathLover1><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=417872\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Here's the graph: \r<BR>\n" );
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document.write( "see image 1.<BR>\n" );
document.write( "<A  rel=nofollow HREF=\"http://imageshack.us/photo/my-images/832/grouchoimage1.jpg/\">W3C Web site</A> \r<BR>\n" );
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document.write( "First note that with no law against smoking, Groucho will smoke <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=12 ALIGN=MIDDLE  ALT=\"12\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigars a day, since smoking any less is costly to him. It is evident from the graph that the efficient level of smoking equals <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=6 ALIGN=MIDDLE  ALT=\"6\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigars.<BR>\n" );
document.write( " <BR>\n" );
document.write( "Alternately, since the efficient outcome will occur where <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MC=MB ALIGN=MIDDLE  ALT=\"MC=MB\"   DISABLED_style= \"max-width:90%; height:auto;\" >, you can solve the two equations for <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=x ALIGN=MIDDLE  ALT=\"x\"   DISABLED_style= \"max-width:90%; height:auto;\" >: \r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MC=x ALIGN=MIDDLE  ALT=\"MC=x\"   DISABLED_style= \"max-width:90%; height:auto;\" > \r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MB=12-x ALIGN=MIDDLE  ALT=\"MB=12-x\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( " <BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MC=MB ALIGN=MIDDLE  ALT=\"MC=MB\"   DISABLED_style= \"max-width:90%; height:auto;\" > => <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1x=12-x ALIGN=MIDDLE  ALT=\"1x=12-x\"   DISABLED_style= \"max-width:90%; height:auto;\" > => <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=2x=12 ALIGN=MIDDLE  ALT=\"2x=12\"   DISABLED_style= \"max-width:90%; height:auto;\" > =>  <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=x=6 ALIGN=MIDDLE  ALT=\"x=6\"   DISABLED_style= \"max-width:90%; height:auto;\" > \r<BR>\n" );
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document.write( "2. The clean air machine,by reducing the smoke from each cigar, also reduces <BR>\n" );
document.write( "the marginal benefits of clean-up by half for each cigar reduced. Thus for the first cigar reduced, the benefits are <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=6 ALIGN=MIDDLE  ALT=\"6\"   DISABLED_style= \"max-width:90%; height:auto;\" > (not <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=12 ALIGN=MIDDLE  ALT=\"12\"   DISABLED_style= \"max-width:90%; height:auto;\" >) and for the second they are <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=5.5 ALIGN=MIDDLE  ALT=\"5.5\"   DISABLED_style= \"max-width:90%; height:auto;\" >, not <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=11 ALIGN=MIDDLE  ALT=\"11\"   DISABLED_style= \"max-width:90%; height:auto;\" >. \r<BR>\n" );
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document.write( "This new <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MB ALIGN=MIDDLE  ALT=\"MB\"   DISABLED_style= \"max-width:90%; height:auto;\" > schedule changes the graph to look like:\r<BR>\n" );
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document.write( "see image 2.<BR>\n" );
document.write( "<A  rel=nofollow HREF=\"http://imageshack.us/photo/my-images/850/grouchoimage2.jpg/\">W3C Web site</A> \r<BR>\n" );
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document.write( "Now, the efficient level of cigars reduced is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=4 ALIGN=MIDDLE  ALT=\"4\"   DISABLED_style= \"max-width:90%; height:auto;\" >, with <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=8 ALIGN=MIDDLE  ALT=\"8\"   DISABLED_style= \"max-width:90%; height:auto;\" > smoked. Algebraically, the new <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MB ALIGN=MIDDLE  ALT=\"MB\"   DISABLED_style= \"max-width:90%; height:auto;\" > schedule is <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MB=6-x%2F2 ALIGN=MIDDLE  ALT=\"MB=6-x%2F2\"   DISABLED_style= \"max-width:90%; height:auto;\" >, so now: \r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MC=MB ALIGN=MIDDLE  ALT=\"MC=MB\"   DISABLED_style= \"max-width:90%; height:auto;\" > => <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1x=6-x%2F2 ALIGN=MIDDLE  ALT=\"1x=6-x%2F2\"   DISABLED_style= \"max-width:90%; height:auto;\" > => <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=3x%2F2=6 ALIGN=MIDDLE  ALT=\"3x%2F2=6\"   DISABLED_style= \"max-width:90%; height:auto;\" > =><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=3x=12 ALIGN=MIDDLE  ALT=\"3x=12\"   DISABLED_style= \"max-width:90%; height:auto;\" > => <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=x=4 ALIGN=MIDDLE  ALT=\"x=4\"   DISABLED_style= \"max-width:90%; height:auto;\" >\r<BR>\n" );
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document.write( "3. We know that with machine rental, <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=4 ALIGN=MIDDLE  ALT=\"4\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigars will be reduced. Suppose <BR>\n" );
document.write( "Groucho has the right to smoke, and so the status quo has him smoking <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=12 ALIGN=MIDDLE  ALT=\"12\"   DISABLED_style= \"max-width:90%; height:auto;\" > a day. \r<BR>\n" );
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document.write( "Harpo has three choices: \r<BR>\n" );
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document.write( "a. <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=not ALIGN=MIDDLE  ALT=\"not\"   DISABLED_style= \"max-width:90%; height:auto;\" ><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+rent ALIGN=MIDDLE  ALT=\"+rent\"   DISABLED_style= \"max-width:90%; height:auto;\" > the<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+machine ALIGN=MIDDLE  ALT=\"+machine\"   DISABLED_style= \"max-width:90%; height:auto;\" > and not relocate Groucho,<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=but ALIGN=MIDDLE  ALT=\"but\"   DISABLED_style= \"max-width:90%; height:auto;\" ><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+pay ALIGN=MIDDLE  ALT=\"+pay\"   DISABLED_style= \"max-width:90%; height:auto;\" > Groucho <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=not ALIGN=MIDDLE  ALT=\"not\"   DISABLED_style= \"max-width:90%; height:auto;\" ><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+to ALIGN=MIDDLE  ALT=\"+to\"   DISABLED_style= \"max-width:90%; height:auto;\" ><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+smoke ALIGN=MIDDLE  ALT=\"+smoke\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( " <BR>\n" );
document.write( "b. <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=rent ALIGN=MIDDLE  ALT=\"rent\"   DISABLED_style= \"max-width:90%; height:auto;\" > the machine and <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=then ALIGN=MIDDLE  ALT=\"then\"   DISABLED_style= \"max-width:90%; height:auto;\" > pay Groucho not to smoke<BR>\n" );
document.write( " <BR>\n" );
document.write( "c. <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=pay ALIGN=MIDDLE  ALT=\"pay\"   DISABLED_style= \"max-width:90%; height:auto;\" > to <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=relocate ALIGN=MIDDLE  ALT=\"relocate\"   DISABLED_style= \"max-width:90%; height:auto;\" > Groucho \r<BR>\n" );
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document.write( "Which would he choose? \r<BR>\n" );
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document.write( "Not renting the machine requires Harpo tocompensate Groucho for the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MC+ ALIGN=MIDDLE  ALT=\"MC+\"   DISABLED_style= \"max-width:90%; height:auto;\" ><BR>\n" );
document.write( "of reducing cigars: <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1%2B2%2B3%2B4%2B5%2B6=+2dollars_in_costs ALIGN=MIDDLE  ALT=\"1%2B2%2B3%2B4%2B5%2B6=+2dollars_in_costs\"   DISABLED_style= \"max-width:90%; height:auto;\" >. Harpo’s benefits are <BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=12%2B11%2B10%2B9%2B8%2B7=57 ALIGN=MIDDLE  ALT=\"12%2B11%2B10%2B9%2B8%2B7=57\"   DISABLED_style= \"max-width:90%; height:auto;\" > dollars, so net benefits are <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=57-21=36 ALIGN=MIDDLE  ALT=\"57-21=36\"   DISABLED_style= \"max-width:90%; height:auto;\" > dollars.\r<BR>\n" );
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document.write( "Machine rental costs $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=10 ALIGN=MIDDLE  ALT=\"10\"   DISABLED_style= \"max-width:90%; height:auto;\" >, plus Harpo has to pay Groucho at least his <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MC ALIGN=MIDDLE  ALT=\"MC\"   DISABLED_style= \"max-width:90%; height:auto;\" > of reduction for the first four cigarettes.  The costs of machine rental are thus:<BR>\n" );
document.write( " <BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=10%2B1%2B2%2B3%2B4=20 ALIGN=MIDDLE  ALT=\"10%2B1%2B2%2B3%2B4=20\"   DISABLED_style= \"max-width:90%; height:auto;\" > \r<BR>\n" );
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document.write( "Relative to the status quo of <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=12 ALIGN=MIDDLE  ALT=\"12\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigars smoked, the benefits of machine <BR>\n" );
document.write( "rental have two components. \r<BR>\n" );
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document.write( "First, Brittany gets the full benefits of seeing <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=4 ALIGN=MIDDLE  ALT=\"4\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigarettes reduced:\r<BR>\n" );
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document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=12%2B11%2B10%2B9=42 ALIGN=MIDDLE  ALT=\"12%2B11%2B10%2B9=42\"   DISABLED_style= \"max-width:90%; height:auto;\" > \r<BR>\n" );
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document.write( "Second, she gets the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=50 ALIGN=MIDDLE  ALT=\"50\"   DISABLED_style= \"max-width:90%; height:auto;\" >% improvement in air quality for the remaining <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+8 ALIGN=MIDDLE  ALT=\"+8\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigars that are smoked:<BR>\n" );
document.write( " <BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=4%2B3.5%2B3%2B2.5%2B2%2B1.5%2B1%2B.5=18 ALIGN=MIDDLE  ALT=\"4%2B3.5%2B3%2B2.5%2B2%2B1.5%2B1%2B.5=18\"   DISABLED_style= \"max-width:90%; height:auto;\" > dollars \r<BR>\n" );
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document.write( "So, net benefits are <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=42%2B18-20=+40 ALIGN=MIDDLE  ALT=\"42%2B18-20=+40\"   DISABLED_style= \"max-width:90%; height:auto;\" > dollars\r<BR>\n" );
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document.write( "Finally, relocation costs $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=40 ALIGN=MIDDLE  ALT=\"40\"   DISABLED_style= \"max-width:90%; height:auto;\" >, and brings Harpo the total area under the <BR>\n" );
document.write( "<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=MB+ ALIGN=MIDDLE  ALT=\"MB+\"   DISABLED_style= \"max-width:90%; height:auto;\" > curve in benefits. (Since Groucho can smoke all he wants after relocation, he bears no costs). Therefore, the net benefits to Harpo of paying for relocation are:<BR>\n" );
document.write( " <BR>\n" );
document.write( "$<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=%2812%2B11%2B10%2B9%2B8%2B7%2B6%2B5%2B4%2B3%2B2%2B1%29-40+=38 ALIGN=MIDDLE  ALT=\"%2812%2B11%2B10%2B9%2B8%2B7%2B6%2B5%2B4%2B3%2B2%2B1%29-40+=38\"   DISABLED_style= \"max-width:90%; height:auto;\" >  \r<BR>\n" );
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document.write( "So the <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=efficient ALIGN=MIDDLE  ALT=\"efficient\"   DISABLED_style= \"max-width:90%; height:auto;\" ><IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=+choice ALIGN=MIDDLE  ALT=\"+choice\"   DISABLED_style= \"max-width:90%; height:auto;\" > is machine <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=rental ALIGN=MIDDLE  ALT=\"rental\"   DISABLED_style= \"max-width:90%; height:auto;\" >.<BR>\n" );
document.write( " <BR>\n" );
document.write( "4. Rather than be banished, Groucho would rent the machine, then pay Harpo <BR>\n" );
document.write( "to allow him to stayand smoke <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=8 ALIGN=MIDDLE  ALT=\"8\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigars. If Groucho rents the machine, he would pay the following costs: \r<BR>\n" );
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document.write( "$<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=10 ALIGN=MIDDLE  ALT=\"10\"   DISABLED_style= \"max-width:90%; height:auto;\" > for machine rental, plus\r<BR>\n" );
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document.write( "$<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=1%2B2%2B3%2B4=10 ALIGN=MIDDLE  ALT=\"1%2B2%2B3%2B4=10\"   DISABLED_style= \"max-width:90%; height:auto;\" > in nicotine \r<BR>\n" );
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document.write( "withdrawals on <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=4 ALIGN=MIDDLE  ALT=\"4\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigars given up, plus $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=4%2B3.5%2B3%2B2.5%2B2%2B1.5%2B1%2B.5=18 ALIGN=MIDDLE  ALT=\"4%2B3.5%2B3%2B2.5%2B2%2B1.5%2B1%2B.5=18\"   DISABLED_style= \"max-width:90%; height:auto;\" > in bribes to Harpo to allow him to smoke <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=8 ALIGN=MIDDLE  ALT=\"8\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigarettes \r<BR>\n" );
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document.write( "The total is $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=38 ALIGN=MIDDLE  ALT=\"38\"   DISABLED_style= \"max-width:90%; height:auto;\" >, less than the $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=40 ALIGN=MIDDLE  ALT=\"40\"   DISABLED_style= \"max-width:90%; height:auto;\" > required to relocate. \r<BR>\n" );
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document.write( "So rather than banish Groucho,Harpo could come out ahead by demanding a little more than the $<IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=18 ALIGN=MIDDLE  ALT=\"18\"   DISABLED_style= \"max-width:90%; height:auto;\" > just necessary for him to allow Groucho to smoke his <IMG STYLE=\"max-width:80%;\" SRC=/cgi-bin/plot-formula.mpl?expression=8 ALIGN=MIDDLE  ALT=\"8\"   DISABLED_style= \"max-width:90%; height:auto;\" > cigars. \r<BR>\n" );
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document.write( "This again demonstrates the Coase theorem: in the absence of transaction costs, <BR>\n" );
document.write( "efficient outcomes will be achieved regardless of the initial distribution of property <BR>\n" );
document.write( "rights.<BR>\n" );
document.write( " </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );