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(8 pts) Suppose now transaction costs were zero, and the firms still own the right to pollute. Is there any agreement the individual and the
(8 pts) Suppose now transaction costs were zero, and the firms still own the right to pollute. Is there any agreement the individual and the firms can come to, such that (i) the socially efficient outcome is reached (ii) no agent or groups of agents wish to deviate from the agreement? Explain your answer carefully. Hint: check L13
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