I am given: Marginal Cost of Homeowner is MC h = 3W Total cost to Homeowner is TC h =1.5W 2 Marginal Benefit (Profits) to Gas company MB M = 0.5w +…

I am given:

Marginal Cost of Homeowner is MCh= 3W

Total cost to Homeowner is TCh =1.5W2

Marginal Benefit (Profits) to Gas company MBM = 0.5w + 50

Total Benefits is TBM = 0.25W2 +50W

The question is :

Do you think that Coasian bargaining is likely to achieve the pareto efficient outcome in this case? Why or Why not?

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