2.

Q2: Michigan SUGAR BEET processing center creates waste ponds that smell terrible interfering with the quality of life of nearby residents. Below are the dollar valued benefits and costs of producing a ton of sugar. Quantity in Private Private Cost External Cost Tons Benefit 1 $140 $100 $20 2 $130 $110 $20 3 $120 $120 $20 4 $110 $130 $20 5 $100 $140 $20 6 $90 $150 $20 7 $80 $160 $20 . Describe the quantity of tons of Sugar that would be produced in a pure market. . Describe the society optimal quantity tons of sugar that should be produced. . Describe two ways that the business can be incentivized to internalize the social costs of sugar production