a) When no assets legal rights are defined: When there are no residence rights with regards to proper to dump pollutants into your river or proper to wash waters, then marginal social Price tag is bigger compared to marginal personal cost as well as the mill do not file the exterior price of air pollution into his accounts.

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MARGINAL SOCIAL Gain (MSB): refers check it out to the additional cost incurred from the society on account of production of an extra device of a very good or support.

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