Due Today at 11 PM EST Larry loves opera and hates rock \'n\' roll. Felix loves

Question

Due Today at 11 PM EST Larry loves opera and hates rock 'n' roll. Felix loves playing rock 'n' roll music at high volume. Unfortunately, they are next-door neighbors in an apartment building with paper-thin walls. In this case, imposes a externality on his neighbor in the form of noise pollution. Why might a command-and-control policy that forbids music to be played above a certain decibel level lead to an inefficient outcome? O An efficient outcome can only be achieved if everyone can do what they love. O Felix playing his music loudly does not do any harm if Larry is not home. O It is unfair because such policy would restrict Felix's activity but not Larry's Suppose the landlord lets the tenants do whatever they want. True or False: According to the Coase theorem, Felix and Larry may negotiate an agreement if bargaining is successful and neither holds out for a better deal. O True O Type here to search

Explanation / Answer

1.An efficient outcome can only be achieved if everyone can do what they love.

2. True,as both of them can not be on better off. One or both of them must have to sacrifice.

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