Green Acres Fertilizer Company is near Barney's Dry Cleaning Service. Green Acres' production process emits noxious odor

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Green Acres Fertilizer Company Is Near Barney S Dry Cleaning Service Green Acres Production Process Emits Noxious Odor 1 (45.42 KiB) Viewed 9 times

Green Acres Fertilizer Company is near Barney's Dry Cleaning Service. Green Acres' production process emits noxious odors that are absorbed by the clothing Barney cleans. The result is that Barney has lost many customers over time. Barney estimates that the odors cost his business $12,000 per year. Green Acres can eliminate its odors by altering its production process at a cost of $10,000 per year. a. If Green Acres has the right to emit the odors, what will the socially optimal outcome be? How will it be reached? Will any money change hands? b. If Barney has the right to odor-free air, what will the socially optimal outcome be? How will it be reached? Will any money change hands? c. Does it matter who has property rights? Explain with the information from the part and b.