16.13 Private foundations support medical research. Doesnt their support prove that tax funding of medical research is unnecessary? Please explain? Every 1 percent reduction in the level of particulates in the air costs $200,000. Low-income residents in a region have a demand for particular reduction of R=10-p (R is the level of particulate reduction and P is the price per 1 percent reduction). High-income residents have a demand for particulate reduction of R=40-2P.

a. Is reduction of the level of particular a public or private good?

b. What will the market demand for particulate reduction be?

c. What is the optimal level of particulate reduction?

16.14 Few orthopedic surgeons publish data describing their surgical volumes, infection rates, mortality rates, functional gain rates, or customer satisfaction rates.

a. How much would a regulation requiring publication of such data cost?

b. Would such a regulation improve the workings of the market?

c. Would such regulation be an appropriate government activity?

d. Do we need a regulation requiring publication of data for surgeons if private physician rating firms already exists?

Please if answer questions, put the number for answered question. Thank you! Comment