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Question 40 (3 points)
Paddy and Mick are the only two inhabitants of a small island off the coast of Ireland.
They burn coal to keep their houses warm at night. However, this coal burning is
harming the air quality on their island. Both Paddy and Mick could install air filters on
their chimneys. These filters cost 50 each. Each filter provides a social benefit of 80,
but those benefits are divided equally among Paddy and Mick. If both Paddy and

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Each filter provides a social benefit of 80 therefore if divided equally among Paddy and Mick will see them attain a 30% gain each. This is further explained below.

What is Global warming?

Generally, Global warming is simply defined as the heating of the Earth's globe seen since the pre-industrial period which raises heat greenhouse gas levels on the Earth.

In conclusion, the benefits if divided equally among Paddy and Mick will see them attain a 30% gain each.

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