1. Now, instead of taxes or quotas, suppose that the government funded research instead, in an effort to reduce pollution. Suppose researchers at CSU's Wheat Breeding Program developed a rust resistant wheat that doesn't need to be sprayed. Now farmers don't have the variable costs of spraying the fungicide, and they have fewer yield losses. And it eliminates the $1.50/bushel negative externality. Compare this policy outcome to the Pigovian tax. Who wins, who loses