Im very confused with externalities chapter.
can someone help me understand by answering this question
Sales results in predict or without a filter on his smokestack . Production withoutfilter results in greater smake damage to Jones . The reltwo individuals are listed in the table belowe relevant gains and losses for theGains to SmithWith filter$200 / w/Without filter$10 / WK$240 / WKA ) If Smith is liable for smoke damage and there areFilter ? Explain carefullyand there are no negotiation costs , will he installB ) How , if at all would the outcome be different if Smith were not liable for smokedamage ? Explain carefull( ) Now suppose that the negotiation costs of maintaining a private agreement betweenSmith and Jones are $30 a week . If Smith is not liable for smoke damage , will he installfilter ? Explain carefullyxplain