3. (5 points ) In Per Kruseell's lecture, "Climate Change Around the World:" (a) Long run global temperature is proportional to In (S/ S), where S is current CO 2 concentration and S is the preindustrial concentration. (b) Temperature in a given 1 by 1 degree cell of latitude and longitude is a function of average global temperature. (c) The damage function is U-shaped with the least damage done at 11.1 degrees centigrade. (d) He concludes that all regions are damaged a about the same by climate change (e) All of the above. (f) All but 3d and 3e. (g) All but 3c and 3e. 4. If P = 13 and P, = 10 for the example considered in class to illustrate Coase's Theorem, the following table results. P1 = 13, P, = 10 Q 1 Q 2 Profit 1 Profit 2 Total Optimal (merge firms ) 5.33 2.33 34.33 No Property Rights 6.5 0 34.25 0 34.25 Firm 1 Shut Down 5 0 21 21 Property Rights Polluter Pays ? ? ? ? ? Victim Pays ? ? ? ? ? (a) (8 points ) Fill in the cells marked with question marks. (b) (5 points ) What is the dead weight loss due to the externality? 5. In a market, demand is given by P = 100 - Q and the (private) marginal cost of production for the aggregation of all firms (the industry supply curve ) is given by