Coase theorem to produce efficient equilibrium are present

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A free-market republican argues against the Pigouvian tax by pointing out that the conditions necessary for the Coase Theorem to produce an efficient equilibrium are present in this situation. Assuming that the republican is correct, describe two methods in which the Coase Theorem could create an efficient outcome. For each method, make sure to identify the amount of paper produced each week and the amount of any fees or payments required for an efficient solution.

Reference no: EM13744196

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