Micoeconomic Question dealing with Supply and Demand?

It seems to be the main issue which the Coase theorem is going to say. There is no need for state intervention. As long as the cost of negotiation is low enough,the two partners might be able to settle the compensation of polluted environment by themselves.The cement company will pay.The point is MC=MR,which will determine the rate of pollution it will make.As a rule, the production of cement will shift to the left. Price will increase,while quantity will decrease.It won't affect demand curve.But in the case that the negotiation cannot be settled,the pollution credit will have the same effects as Pigouvian taxes.It will also shift the supply curve to the left.