Consider a plant that pollutes lead into the drinking water of a small town. The town...

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Accounting

  1. Consider a plant that pollutes lead into the drinking water of asmall town. The town is con- sidering a couple of interventions(i.e. taxation versus regulation) to address this problem. However,they are uncertain about the firm’s cost of reduction. Provide asolution to this problem. How does the policy instrument affectefficiency when cost are unknown.

  2. If Eliza is currently willing to trade 4 loaves of bread for 1gallon of milk, then she must like loaves of bread better thangallons of milk? Why or why not?

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ANS PLANT POLLUTES LEAD IN TO DRINKING WATER OF A SMALL TOWN WHICH IS A SERIOUS MATTER TOWN IS CONSIDERING A COUPLE OF INTERVENTION LIKE TAXATION AND REGULATION TAXATION WILL INCREASE THE    See Answer
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