The graph illustrates the market for cotton Suppose that the cotton growers use a chemical to control insects and waste flows into the town's river. The marginal social cost of producing the cotton is double the marginal private cost no one owns the river and the two takes no action to control the waste, what is the quantity of cotton and the deadweight loss created? If no one owns the river, the quantity of cotton produced is to tons a month The deadweight loss a month 320 290 240 200 NO 120 80 40 Price (dollars per ton) Quantity ons per month
The graph illustrates the market for cotton Suppose that the cotton growers use a chemical to control insects and waste flows into the town's river. The marginal social cost of producing the cotton is double the marginal private cost no one owns the river and the two takes no action to control the waste, what is the quantity of cotton and the deadweight loss created? If no one owns the river, the quantity of cotton produced is to tons a month The deadweight loss a month 320 290 240 200 NO 120 80 40 Price (dollars per ton) Quantity ons per month
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Transcribed Image Text:K
The graph illustrates the market for cotton
Suppose that the coton growers use a chemical to control insects and waste flows into
the town's river.
The marginal social cost of producing the cotton is double the marginal private cost
If no one owns the river and the two takes no action to control the waste, what is the quantity
of cotton and the deadweight loss created?
CTD
If no one owns the river, the quarsity of cotton produced is 60 tons a month.
The deadweight loss is $month
300-
320-
280
240
200
140-
120-
80-
40
Price (dollars per ton)
D
16 M
ID
20 30 40 50 60 70 80 90 100
Quantity (ons par month)
Q
a
G
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