Annual Tax Amount ($)	% Yes
20	85
40	75
60	60
80	40
120	15
200	5

These are the findings of a random sample of Americans who were asked how much they would be ready to pay to avoid the development of a titanium mine in the United States' Boundary Waterways, which would raise the risk of contamination of these pristine waters bordering Minnesota and Ontario. The percentage of persons who said yes when asked if they would be ready to pay the given amount in extra taxes per year to prevent a mine from being built in the Boundary Waters is shown in the findings.

1.) What is an estimate of the total willingness to pay of Americans to protect the Boundary Waters if there are 300 million of them?

2.) Assume the demand curve for titanium in the United States is P = 200 - 100Q, where P is the market price per pound and Q is the annual quantity consumed in billion pounds. The mine's marginal cost of production is $100 per pound. Should the mine be built based on a cost-benefit analysis? (Assume a competitive titanium market and that this mine will be the only titanium producer.)

3.) Assume that a polluting company earns $100,000 per year in earnings. Residents in the area suffer $150,000 in annual damages as a result of the firm's pollution. Assume that no abatement technology is available and that the firm's owner has the authority to operate. Propose a trade that benefits both the residents and the property owner.