Last year, Ventura County farmers harvested nearly 12,000 acres of strawberries valued at more than $323 million.

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Last year, Ventura County farmers harvested nearly 12,000 acres of strawberries valued at more than $323 million. To comply with the federal Clean Air Act, growers must use 50 percent less pesticide. It is estimated that strawberry output will fall by 60 percent. Explain how a limit on pesticide will change the efficiency of the strawberry industry. Would a cap-and-trade scheme be more efficient?
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Microeconomics

ISBN: 978-0133019940

11th edition

Authors: Michael Parkin

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