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(Table: Whole Paycheck Externalities) a Supermarket Chain, Whole Paycheck, Is

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(Table: Whole Paycheck Externalities) A supermarket chain, Whole Paycheck, is planning on opening a store near a residential neighborhood. The neighbors are opposed to the construction, since they believe increased traffic and other nuisances will decrease their home values. According to the Coase theorem, what is the optimal store size? (Table: Whole Paycheck Externalities) A supermarket chain, Whole Paycheck, is planning on opening a store near a residential neighborhood. The neighbors are opposed to the construction, since they believe increased traffic and other nuisances will decrease their home values. According to the Coase theorem, what is the optimal store size?

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The Coase theorem predicts that "costles...

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