Resolve negative externalities

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1) The Coase Theorem suggests that, under some conditions, private bargaining will resolve negative externalities. Does this mean that pollution problems should be left for the market to solve? Why or why not? Discuss this from the perspective of efficiency, as well as equity.

2) Economist Robert Solow has said that "the monopolist is the conservationist's friend." Explain what he meant in the context of nonrenewable resource extraction.

Reference no: EM132518338

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