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Unformatted text preview: enforced by a damage remedy, with damages equal to actual harm caused. What proportion of emissions removal will the factory choose, and why? How much will the firm pay in damages? 3. Assume that firms are given the property right to produce using any technology, enforced by a damage remedy, with damages equal to the additional cost of using a technology which removes emissions (i.e., homeowners can require the factory to stop emitting dust, but must pay the additional cost involved). Assuming that there are no transactions costs, what percentage of dust removal will the residents choose? Compare your answer to that given in both 1 and 2. How much will the residents pay to the firm in damages?...
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This homework help was uploaded on 04/16/2008 for the course LEGALST 145 taught by Professor Rubenfield during the Spring '08 term at University of California, Berkeley.
- Spring '08