Questions are adapted from Tietenberg and Lewis (2018), Environmental and Natural Resource Economics) 1. If Sydney Water that supplies water to households wants to increase efficiency in household water use, should it charge a flat-rate or flat-fee for pricing water? Why?

4. Would a private forest owner normally be expected to reach an efficient balance between using his or her forest for recreation and for harvesting wood? Why or why not?

** please give me the correct answer with explanation and conclusion (mandatory) .