28.1 Externalities and Utility Functions Tom and Jerry are roommates. (a) Tom, who likes loud music, has utility function is UT(0T: M) = OT + M: where 0: is the number of cookies he eats per week and M is the number of hours of loud music per week that is played while he is in their room. What is Tom's utility if CT = 20, and M = 0? (b) Jerry hates all kinds of music. His utility function is UJ(CJ,M) = Q; ELF/16. What is Jerry's utility if C; = 20, and M = U? 28.2 Coasian Bargaining for Externalities Continuing the story in the previous problem about roommates Tom and Jerry: consider what would happen if Tom (the music-lover) were to offer Jerry 5 cookies in exchange for 8 hours of playing loud. music. (3} Recall that before this trade, there were zero hours of music, and each person had 10 cookies of their own. What would the be values for hours of music M , Tom's cookies CT, and Jerry's cookies C"; after the trade? (b) Recall that Tom's utility function is UT(CT, M) = CT + M. What is Tom's utility after the trade? {c} Recall that Jerry's utility function is UJ(CJ,M) = C; M2f16. What is Jerry's utility after the trade