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How would the externality problem arising from a smoker and a non- smoker who treasures clean air be resolved under the Coase

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Rights would be given to either smoker or non smoker. If right to pollute is given to smoker the non smoker would have to pay some money to smoker to reduce pollution. On the other hand if right to clean air are given to non smoker the smoker would have to pay to non smoker to pollute. In both ways the amount of pollution will be reduced to a level where MDC=MB

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