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Jackie and Abe must spend a day working together. Jackie likesto chew gum, and her...

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Question

Economics

Jackie and Abe must spend a day working together. Jackie likesto chew gum, and her marginal benefit from one pack of gum a dayis

$4

. The price of a pack of gum is

$2

. Abe dislikes the sound of gum-chewing and his marginal benefitfrom an environment free of the sound of gum-chewing is

$6

a day. What is the outcome if they meet at Jackie's home? Whatis the outcome if they meet at Abe's home? If they meet at Jackie'shome, Jackie

?

chew gum and if they meet at Abe's home, Jackie

?

chew gum. A. does; does not B. sometimes does and sometimes doesnot; sometimes does and sometimes does not C. does not; does not D.does; does E. does not; does

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