Problem solving question $(10$ marks$)$

a$.$ Suppose that hedonic wage studies indicate a willingness to pay $$50$ per person for a reduction in the risk of a premature death from an environmental hazard of $1/100000.$ If the exposed population is $4$ million people, what is the implied value of a statistical life?

b$.$ Suppose that an impending environmental regulation to control that hazard is expected to reduce the risk of premature death from $6/100000$ to $2/100000$ per year in that exposed population of $4$ million people. What is the maximum this regulation could cost and still have the benefits be at least as large as the cost. What is your answer?