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The cost of controlling emissions at a firm goes up rapidly as the amount of emissions reduced goes up. Here is a possible model:
Where q is the reduction in emissions (in pounds of pollutant per day) and C is the daily cost to the firm (in dollars) of this reduction. Government clean air subsidies amount to $750 per pound of pollutant removed. How many pounds of pollutant should the firm remove each day to minimize net cost (cost minus subsidy)
Guilty-knowledge Test
A psychological assessment that detects if a person has knowledge only a guilty party could possess, by monitoring physiological responses to specific stimuli.
Rorschach Inkblot Test
A psychological test involving the interpretation of inkblots to analyze a person's emotional state and personality characteristics.
Behaviorism
A psychological approach that emphasizes the study of observable behaviors and the effects of learning and environment.
Gestalt Psychology
A theory of mind and behavior that proposes the human brain perceives things as whole patterns and configurations, rather than merely as the sum of their parts.
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