Consider a situation where a factory has the legal right to pollute a river. If the government intervenes with a new regulation that forces the factory to reduce its pollution to a socially optimal level, the resulting economic outcome is both Pareto efficient and a Pareto improvement over the initial situation.
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Consider a situation where a factory has the legal right to pollute a river. If the government intervenes with a new regulation that forces the factory to reduce its pollution to a socially optimal level, the resulting economic outcome is both Pareto efficient and a Pareto improvement over the initial situation.
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Consider a situation where a factory has the legal right to pollute a river. If the government intervenes with a new regulation that forces the factory to reduce its pollution to a socially optimal level, the resulting economic outcome is both Pareto efficient and a Pareto improvement over the initial situation.