1.If a painter tells you that he would spent $30 on a resperator (but not $31) that protects him from paint fumes that produce a 0.01% chance of killing him? How much cash value would you say that he places on his life? How would risk aversion influence that amount?

2.Assume there is a steel plant that dumps pollutants into a stream that is used by commercial fisherman. What are the private means by which the fishermen and the steel plant owner might resolve the matter? How might these differ, depending on whether or not the steel plant has a legal right to pollute the stream?