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Facilitate a coasian solution to externality

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Reference no: EM132649489

Suppose your neighbor enjoys riding around his yard on a rather loud dirt bike. What kind of externality is this (positive or negative, consumption or production)? What would the government have to do, if anything, to facilitate a Coasian solution to this externality? Would the result be socially optimal? Explain.

Reference no: EM132649489

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