Tom and larry must spend a day working together tom likes, Econometrics

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Tom and larry must spend a day working together tom likes

Tom and Larry must spend a day working together. Tom likes to smoke cigars and the price of a cigar is $2. Larry likes a smoke-free environment.

If Tom's marginal benefit from a cigar a day is $20 and Larry's marginal benefit from a smoke-free environment is $25 a day, what is the outcome if they meet at Tom's home? What is the outcome if they meet at Larry's home?

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Econometrics: Tom and larry must spend a day working together tom likes

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