chemical factory emits waste products into a river. The waste products affect a fishery downstream. Suppose MD- 2E and MAC-60-3E. Calculate the following and illustrate your answers with graphing: a) The socially efficient level of emission, ars the total social cost related to this level of emission. b) Suppose the chemical factory has the property rights to use the river, and the two parties trade on property rights with a single price for all units. What will be the emission level in the cquilibrium? What is the price per unit? Who should pay how much to whom? What are the total gains from trade for the chemical factory? What are the total gains from trade for the fishery? What are the total damages? What are the total abatement costs? c) Suppose the fishery has the property rights to use the river, and the two parties trade on property rights with a single price for all units. What will be the emission level in the cquilibrium? What is the price per unit? Who should pay how much to whom? What are the total gains from trade for the chemical factory? W

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