Q1. 1. Why are fixed limits on pollution emissions for every firm likely to be an inefficient means of reducing pollution compared to a Pigouvian tax?
2. Would the sales of pollution rights or certificates be an efficient means of allocating a given amount of pollution? Elucidate.
3. Illustrate what are the essential differences among pure public goods also pure private goods?
Q2. Feudalism also mercantilism relied on marketplaces to solve the 3 main coordination problems.