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Consider the model with steel producer and fishery studied in class. At the edn of the class, we dealt with externalities by assigning the property

Consider the model with steel producer and fishery studied in class. At the edn of the class, we dealt with externalities by assigning the property rights for the water to fishery. Assume that the property rights are assigned to steel producer and show that it leads to the same socially optimal outcome as assigning the property right to fishery

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