Kermit makes a living gathering algae. His economist has told him there is an external benefit from skimming algae from ponds because the algae prevent oxygen from being absorbed into the water, harming the fish. The algae market is highly competitive, so Kermit believes his business is a price taker. Kermit knows that the marginal cost and inverse demand curve for his product are, respectively, P = MC = 0.3Qs P = 6 0.25Qd Here, P is the price in dollars per pound of algae, and Q is the number of pounds produced per day. The economist estimates that the external marginal benefit of algae gathering is $0.15 per pound of algae produced. What is the deadweight loss if Kermit produces the profit-maximizing output, ignoring the external benefit conferred on both society and the fish? $1.64 $0.02 $3.35 $6.70