the market outcome is Pareto efficient. But, moving from the status quo (nocorrective tax) to this point is not a Pareto improvement, but it is a Kaldor Hicks improvement.This problem illustrates this in an example with numbers.22The market for cobalt has Total Benefit = 100Q2Qand Total Cost = 3Q. Productionof cobalt causes a negative externality equal to 20Q, so that each unit of cobalt productionhas a negative externality equal to 20