Externalities. Negative Externalities; Regulation, Pigovian Taxes, Tradeable Permits. Negative Externality: MSC>MPC. Negative Externality. With Perfect Competition, MSB<MSC. Too Much Produced Deadweight Social Loss Optimal Pollution >0 Solutions? Regulation and taxes
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Negative Externalities; Regulation, Pigovian Taxes, Tradeable Permits
With sufficiently low transactions costs, the equilibrium is economically efficient regardless of who has the property right.