13. Suppose there are ten people playing cards in a room. One of them wants to smoke a cigar, nine ofthem dislike the smell of cigar smoke. The smoker values the privilege of smoking at $6, and each ofthe other nine people of the room would be willing to pay 60 cents for clean air in the room. The rulesgoverning use of the room state that smoking is not allowed unless everyone agrees to allow smoking.If the rules governing the room instead stated that smoking is allowed unless everyone in the roomagrees to prohibit it, then:
(A) The cigar smoker will smoke, and will pay each other occupant 60 cents
(B) The non-smoking occupants will pay the cigar smoker to not smoke.
(C) The parties may or may not be able to reach a negotiated agreement depending on the bargainingstrength of each.
(D) The cigar smoker will smoke and not have to pay the other occupants for the external cost.
(E) The Coase theorem can not solve the problem in this case.