The graph shows the market for pesticide. The firm that produces the pesticide dumps waste into a river that the local water ski club owns. How much pesticide does the firm produce and how much does the firm pay the local ski club to dump waste into the river? Is the outcome efficient? Why or why not? The firm produces tons of pesticide a week and pays the local ski club OA. 4,000; $300 OB. 4,000; $400 OC. 8,000; $300 OD. 8,000 $200 The outcome is OA. inefficient because marginal social cost is greater than marginal private cost a ton.

The graph shows the market for pesticide. The firm that produces the pesticide dumps waste into a river that the local water ski club owns. How much pesticide does the firm produce and how much does the firm pay the local ski club to dump waste into the river? Is the outcome efficient? Why or why not? The firm produces tons of pesticide a week and pays the local ski club OA. 4,000; $300 OB. 4,000; $400 OC. 8,000; $300 OD. 8,000 $200 The outcome is OA. inefficient because marginal social cost is greater than marginal private cost a ton.

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter12: Environmental Protection And Negative Externalities

Section: Chapter Questions

Problem 43P: A city currently emits 15 million gallons (MG) of raw sewage into a lake that is beside the city....

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