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4. Given the concerns over climate change - it would make sense that we should be able to model the economics of pollution. Consider that
4. Given the concerns over climate change - it would make sense that we should be able to model the economics of pollution. Consider that D(x) gives the damage done by pollution x. The costs of pollution control 0 are C(0, t), where 0 = x - x, xis the amount of pollution there would be if none were controlled, and t is a parameter related to technology: when t increases, pollution control technology has become better. Find the first- and second-order conditions for the problem of choosing the pollution level that minimizes the total costs associated with pollution, TC(x) = D(x) + C(x - x, t). Make reasonable assumptions about the signs of the derivatives D', C., C., C. ag Co. C_ and use them to find and sign, if possible the comparative static effect on the optimal pollution level of an increase in t. Explain the economics of your result
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