Consider the following scenario.Reggie owns a factory that e…
Consider the following scenario.Reggie owns a factory that emits harmless but foul-smelling fumes near a lakeside resort owned by Doug. Doug is convinced that Reggie’s factory keeps some of Doug’s would-be guests away. There is a filter Reggie could install that would greatly reduce the smell. Reggie and Doug have each assessed the situation and come up with the following data: Gains To No Factory Factory with Filter Factory with No Filter Reggie $0/day $325/day $400/day Doug $300/day $150/day $50/day If there is a local ordinance that Doug could invoke to force Reggie to shut down, then