Problem 1: Environmental Protection Agency (EPA) regulations tend to go through many stages of review and approval before they are implemented. Not only do many regulators have to approve a new regulation, but comments and reviews from industry and conservation organizations are typical. Explain these complicated procedures in light of the theories of supply and demand for regulation.
Problem 2. Corporate responsibility may require changing the mission of the company to a "constrained" wealth maximization. Is it possible for a few firms in the marketplace to shift their objective functions in this way? Why?