Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please answer part C only.Thank you Problem 1 The table provides information about costs and benets arising from the production of a pesticide that pollutes

Please answer part C only.Thank you

image text in transcribed
Problem 1 The table provides information about costs and benets arising from the production of a pesticide that pollutes a lake used by a sh farmer. Pesticide reducer's MC Quantity of . estieide Marginal external cost Marginal social benet of esticide 0 0 250 5 205 15 30 0 33 67 100 165 130 50 75 133 167 100 75 7 140 200 233 te|2133%20100%205%2075%20167%20 a) If no one owns the lake and if there is no regulation of pollution, what is the quantity of pesticide produced per week and what is the marginal cost of pollution borne by the sh farmer? b) If the sh farm owns the lake, how much pesticide is produced per week and what does the pesticide producer pay the farmer per tonne? c) If the pesticide producer owns the lake, how much pesticide is produced per week and how much rent per week does the farmer pay the factory to restrict pesticide production? (1) Compare the quantities of pesticide produced in your answers to parts (b) and (c) and explain the relationship between these quantities

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting A Critical Approach

Authors: John Friedlan

4th edition

978-1259066528

Students also viewed these Economics questions