a. To help fight the problem of nonpoint source pollution associated with agricultural runoff, your state is

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a. To help fight the problem of nonpoint source pollution associated with agricultural runoff, your state is contemplating charging an annual fee of $500 to every seller of pesticides. If this fee is to achieve an efficient solution, state specifically according to externality theory 

(a) What the $500 fee must represent.

(b) In which market. 

b. Illustrate graphically, labeling where and how the fee is imposed.

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