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The graph illustrates the unregulated market for pesticide. When the factories produce pesticide, they also create waste which they dump into a lake on the
The graph illustrates the unregulated market for pesticide. When the factories produce pesticide, they also create waste which they dump into a lake on the outskirts of a small town. The marginal external cost of the dumped waste is equal to the marginal private cost of producing pesticide (that is, the marginal social cost of producing the pesticide is double the marginal private cost). What is the quantity of pesticide produced if no one owns the lake and what is the efficient quantity of pesticide? What is the deadweight loss? Question content area bottom left Part 1 If no one owns the lake, the quantity of pesticide produced is 20 tons a week. Part 2 The efficient quantity of pesticide is 160 tons a week. Part 3 If no one owns the lake, the deadweight loss is $ enter your response here a week. >>> Answer to 2 decimal places
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