Government regulators know that pollution is a problem in Cleveland. However, information on the social cost of this externality is difficult to come by.
Which of the following statements best describes how this information problem might manifest itself? a. Well-intentioned regulators monitor a handful of polluting factors and are unable to determine how much they contribute to the problem. b. Well-intentioned regulators decide to shut down the plants and start government production in state-of-the-art factories. c. Well-intentioned regulators impose a collective tax that ends up reducing output beyond the optimal level of output.
d. Well-intentioned regulators fail to do anything because they are afraid of doing the wrong thing.
Question 2
Firms maximize profit when
A) the additional benefit from producing a good equals the additional cost of producing that good.
B) MR = MC.
C) the derivative of the profit function with respect to output is zero.
D) All of the above.
The information coded in DNA
Looking carefully at the scan tool data is very helpful in locating the source of a problem.
Meteorological Factors Affecting Air Pollution
Monitoring shows that many forms of air pollution have decreased
Solution to exponential problem
Simplified diagram of information flow (the central dogma) from DNA to RNA