Beautiful flower gardens benefit the residents of dwellings as well as others in the community. Assume that flowers are produced in a competitive market.

(i) label the market price "Pm ", and label the market output "Qm". (ii) label the socially efficient level of output "Qs". (iii) shade the area of the deadweight loss. (b) Is marginal social cost greater than, less than, or equal to marginal social benefit at the market output? (c) How will a tax on producers of the flowers affect the deadweight loss that you identified in part (a) (iii) ? Explain.