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What the sufferer can do is impose a charge on the polluter only if the charge is greater than the marginal cost but less than the marginal profit. This market mechanism will benefit both sides but only to the equilibrium of Q3, anything greater will exceed the marginal cost to the marginal profit and no charge would help the sufferer. So in theory the equilibrium if achieved will create a social efficient output of pollution. But how significant and realistic is this?
Another mechanism used to help eradicate pollution is environmental charges to create the sustainability of the social efficient market, for this to occur the marginal social benefits and costs must equal...
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