Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Principles of Microeconomics
7th Edition
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter10: Externalities
Section: Chapter Questions
Problem 10PA
Related questions
Question
Note:-
- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism.
- Answer completely.
- You will get up vote for sure.
Transcribed Image Text:The graph illustrates the unregulated market for pesticide.
When the factories produce pesticide, they also create waste which they dump into
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 pesticide (that is, the marginal social cost of producing the pesticide is double the
marginal private cost).
If the pesticide factories own the lake, how much pesticide is produced?
If the pesticide factories own the lake, the quantity of pesticide produced is
tons a week.
Transcribed Image Text:360-
320
280
Price and cost (dollars per ton)
240
200-
S
160-
120-
80-
40
10
20
30
40
50
ง
B
Quantity (tons per week)
>>> Draw only the objects specified in the question.
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