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A competitive firm pollutes the air. The following graph shows the demand for the firm's product and the private and social marginal cost curves. The numbers in the graph indicate areas. Price MCORNATE 12 Demand 10 15 Quantity 70 80 Suppose: transactions costs are so high that negotiation is impossible . it would cost the neighbors $6 to move. . there is no legal penalty for pollution. 22. Do the neighbors move? Why or why not? What is the social gain? Suppose: transactions costs are so high negotiation is impossible . it would cost the neighbors $6 to move the firm is legally required to reimburse the neighbors for all pollution damage. 23. Do the neighbors move? Why or why not? What is the social gain