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If society is made up of only these two parties (i.e. there are no additional costs or benefits to others), what is the efficient outcome?
If society is made up of only these two parties (i.e. there are no additional costs or benefits to others), what is the efficient outcome? Should the factory install the scrubber or not, and where should the farmer plant crops this year? The efficient outcome occurs when the total social costs are lowest , or net social benefits are highest . In this case, the factory should not install the scrubber and the farmer should plant in the west field
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