Business, 13.11.2019 17:31, darlenepitre

1. now imagine that the tax on fishing works in a different way: each player must pay a tax τ proportional to the fishing hours of the other player. so mckenna would pay an amount equal to τen, and natasha would pay τem.
evaluate the following statement and say whether it is true or false.
this modified tax would still be able to produce a pareto-efficient outcome, if the value of τ is chosen appropriately.
2. justify your answer to the previous question. if you want to include some formulas/calculation in the answer, you can make a photo and attach it here. if you prefer to just explain the reason in words, it is equally fine, as long as you explain the reason why the statement is true or false.

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1. now imagine that the tax on fishing works in a different way: each player must pay a tax τ propo...