Suppose that Astro and Philly are neighbors living in a duplex, in two connected apartments. Astro prefers that the building is quiet. But Philly likes to throw parties and prefers that the building is noisy. Suppose that Astro values (the benefits) a quiet night at $20, and the benefits to Philly of throwing a noisy party are $70. One could also say that the costs to Astro of the party are -$20, and the costs to Philly of the quiet are -$70. Please answer the following questions. 1. Suppose that the owner of the building rules that the building must remain quiet at all times. Thus, Astro has a legal right to quiet. If this right cannot be negotiated, then the total net benefits to Astro and Philly (together) are $ [Select] 2. Now let's apply the insights from the Coase theorem. Suppose Astro had the right to quiet, but now assume that right can be negotiated so that Philly could buy the right and throw a party. Assume that the gains from trading that right are split equally. Philly could buy the right (to party and make noises) for $ [Select]
