List of top Microeconomics Questions on Public goods and market failure

Consider the following information in the context of negative production externality:

Which one of the following statements is CORRECT in the context of positive consumption externality?

Consider a case of negative production externality, where \(MSC\) is marginal social cost, \(MPC\) is marginal private cost, and \(MPB\) is marginal private benefit. Assume that the property rights belong to the polluter. As per the Coase theorem, payment \((p)\) will be acceptable to both parties (i.e., polluter and the affected party) when