If no one owns the river and the town takes no action to control the waste, what is the quantity of cotton and the deadweight loss created?

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.

Transcribed Image Text:

Price (dollars per ton) 150 | 125 100 75 50 25 0 100 200 S D 300 400 500 Quantity (tons per month)