What is te equilibrium price and quantity of fertilizer in, Ask an Expert

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What is te equilibrium price and quantity of fertilizer in an unregulated, competitive mar- ket? b) What is the efficient quantity of fertilizer? c) Suppose government imposes a tax equal to the marginal external cost. What is the equi- librium price paid by consumers and the equi- librium quantity after implementation of the tax? d) At the output level in part (c), how much is the tax? e) How much tax revenue does government col- lect? f) What is the deadweight loss borne by society if the externality is left uncorrected?

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