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The graph illustrates the market for tomatoes. Price (dollars per tonne) 150 Suppose that the tomato grower uses a chemical to control insects and waste
The graph illustrates the market for tomatoes. Price (dollars per tonne) 150 Suppose that the tomato grower uses a chemical to control insects and waste flows into the town's river. The marginal social cost of producing the tomatoes is double the marginal private cost. 125- If no one owns the river and the town takes no action to control the waste, what is the quantity of tomatoes and the deadweight loss created? 100- 75- If no one owns the river, the quantity of tomatoes produced is 400 tonnes a month. 50- The deadweight loss is $ 1200 a month D 25 50 100 150 200 250 300 350 400 450 500 Quantity (tonnes per month) O
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