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? *** If no one owns the lake, the quantity of pesticide produced is 30 tons a week. The efficient quantity of pesticide is 20 tons a week. If no one owns the lake, the deadweight loss is $ a week. >>> Answer to 2 decimal places. 1260- 1080 900- 720- 540 360- 180- 04 0 Price (dollars per ton) S to D 30 60 90 120 150 180 210 240 270 300 Quantity (tons of pesticide per week)

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? *** If no one owns the lake, the quantity of pesticide produced is 30 tons a week. The efficient quantity of pesticide is 20 tons a week. If no one owns the lake, the deadweight loss is $ a week. >>> Answer to 2 decimal places. 1260- 1080 900- 720- 540 360- 180- 04 0 Price (dollars per ton) S to D 30 60 90 120 150 180 210 240 270 300 Quantity (tons of pesticide per week)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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This is an end-of-chapter problem that I'm struggling with! thanks!
Differentiate between private goods, public goods, common resources, and externalities