Problem
1. Show how a proper tax on pollutant emissions can change resource prices so that even the most greedy of polluters will act so as to maximize social welfare. Show that without such a tax, a less greedy, well-intentioned polluter might fail to do as well, due either to competitive pressure or choice of the wrong level of pollution control.
2. What problems are involved in setting the proper tax on pollutant emissions? Could one set an antipollution tax so high that pollution would be too low, from a social point of view? Explain.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.