use the following information and the figure which illustrate the market for a pesticide with no governmet intervention to work problem 24 to 27

when factories produce pesticide they also create waste which they dump into a lake on the skirts of the town . the marginal external cost of the waste is equal to the marginal marginal private cost of producing the pestcide (that is the marginal social cost of producing the pesticide is double the marginal private cost)

illustrat and the figure, which market for a pesticide with no govern- 16 ment intervention, to work Problems 24 to 27. 20 When factories produce pesticide, they also create waste, which they dump into a lake on the ou skirts 28. Wi of the town. The marginal external cost of the waste wh is equal to the marginal private cost of producing the pri pesticide (that is, the marginal social cost of produc- of ing the pesticide is double the marginal private cost). 29. Wi wh Price (dollars per ton) 150 ger 30. IF 125 the wh 100 th Use the 75- Ameri Onon 50 most dump 25 Using dump 0 10 20 30 40 50 to upg Quantity (tons per week) mud barrie 24. What is the quantity of pesticide produced if no seepin one owns the lake and what is the efficient return quantity of pesticide? 25. If the residents of the town own the lake, what 31. I is the quantity of pesticide produced and how much do residents of the town charge the factories to dump waste? 32. 26. If the pesticide factories own the lake, how much pesticide is produced? 27. If no one owns the lake and the government 33. I levies a pollution tax, what is the tax.that achieves the efficient outcome