What is the quantity of pesticide produced if no one owns the lake and what is the efficient quantity of pesticide?
When factories produce pesticide, they also create waste, which they dump into a lake on the outskirts of the town. The marginal external cost of the waste is equal to the marginal private cost of producing the pesticide (that is, the marginal social cost of producing the pesticide is double the marginal private cost).

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150 125 D 100 75 50 25 10 20 30 40 50 Quantity (tons per week)