Societal Cost of Pesticides
Suppose the repeated application of a pesticide used on orange trees contaminates groundwater. The pesticide is applied annually in almost all of the orange groves throughout the world. Most orange growers regard the pesticide as a key input in their production of oranges.
Tasks:
- Use a diagram of the market for the pesticide to illustrate the implications of a failure of the orange producers’ costs to reflect the social costs of groundwater contamination.
- Use the diagram to explain a government policy that might be effective in achieving the amount of orange production that fully reflects all social costs.
Submission Requirements:
Submit the analysis for grading before the end of the week. Your response should be approximately two pages long.
- Format: Microsoft Word
- Font: Arial, 12-point, double-spaced
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