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1. Alexander lives in an apartment building and gets a $250 benefit from playing his stereo. Mary, who lives next door to Alexander and often loses sleep due to the loud music coming from Alexander’s stereo, bears a $350 cost from the noise. What is the socially optimal solution? If Mary had to hire a lawyer to draw up the contract, what is the maximum amount she could pay to the lawyer to ensure that both Alexander and Mary would benefit from the agreement? Show all your work
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1. Alexander lives in an apartment building and gets a $250 benefit from playing his stereo. Mary, w...
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