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Assume that farmers use pesticides to help improve their crop yields and that the pesticide leaches into the local water supply. What type of externality
Assume that farmers use pesticides to help improve their crop yields and that the pesticide leaches into the local water supply. What type of externality does this represent and why? Represent this externality graphically in the market for crops. Explain how the free market quantity of crops compares to the socially optimal quantity of crops. What is the deadweight loss if this externality is not internalized
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