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esticide (that is, the marginal social cost of producing the pesticide is double the marginal pr uppose that no one owns the lake and that the government levies a pollution tax. raw a point to show marginal social cost if production is 80 tons. raw the MSC curve and label it. raw an arrow at the efficient quantity that shows the marginal external cost. he tax per ton of pesticide that achieves the efficient quantity of pollution is s

esticide (that is, the marginal social cost of producing the pesticide is double the marginal pr uppose that no one owns the lake and that the government levies a pollution tax. raw a point to show marginal social cost if production is 80 tons. raw the MSC curve and label it. raw an arrow at the efficient quantity that shows the marginal external cost. he tax per ton of pesticide that achieves the efficient quantity of pollution is s

Principles of Economics 2e
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter12: Environmental Protection And Negative Externalities
Section: Chapter Questions
Problem 40P: Show the market for cigarettes in equilibrium, assuming that there are no laws banning smoking in...
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The graph illustrates the unregulated market for pesticide. The factories dump their waste in a lake on the outskirts of a small town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing the pesticide (that is, the marginal social cost of producing the pesticide is double the marginal private cost). Suppose that no one owns the lake and that the government levies a pollution tax. C Draw a point to show marginal social cost if production is 80 tons. Draw the MSC curve and label it Draw an arrow at the efficient quantity that shows the marginal external cost. The tax per ton of pesticide that achieves the efficient quantity of pollution is S 540 480- 420- 360- 300- 240- 180- 120- 60+ 0+ 0 Price and cost (dollars per ton) 20 80 S ID 40 60 Quantity (tons per week) >>> Draw only the objects specified in the question. Q 100
Transcribed Image Text:The graph illustrates the unregulated market for pesticide. The factories dump their waste in a lake on the outskirts of a small town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing the pesticide (that is, the marginal social cost of producing the pesticide is double the marginal private cost). Suppose that no one owns the lake and that the government levies a pollution tax. C Draw a point to show marginal social cost if production is 80 tons. Draw the MSC curve and label it Draw an arrow at the efficient quantity that shows the marginal external cost. The tax per ton of pesticide that achieves the efficient quantity of pollution is S 540 480- 420- 360- 300- 240- 180- 120- 60+ 0+ 0 Price and cost (dollars per ton) 20 80 S ID 40 60 Quantity (tons per week) >>> Draw only the objects specified in the question. Q 100
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