Question: d . What does the Case theorem suggest about negotiations between the town and the factory?Whether or not the factory remains open depends on whether
d What does the Case theorem suggest about negotiations between the town and the factory?Whether or not the factory remains open depends on whether the factory has the right to stay open or the town has the right to close the factory. If the costs of negotiation are low, the town and the factory will reach an agreement where the factory will remain open and the factory will compensate the town. If the costs of negotiation are high, the town and the factory will reach an agreement where the factory will remain open and the factory will compensate the town. If the costs of negotiation are low, the town and the factory will reach an agreement where the factory will close and the town will compensate the factory. If the costs of negotiation are high, the town and the factory will reach an agreement where the factory will close and the town will compensate the factory.
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