Problem
Use the following information to work Problems 1 and 2.
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.
1. 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?
2. If Tom's marginal benefit from a cigar a day is $25 and Larry's marginal benefit from a smoke-free environment is $20 a day, what is the outcome if they meet at Tom's home? What is the outcome if they meet at Larry's home?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.