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Societal Cost of Pesticides

Economics
Tutor: None Selected Time limit: 1 Day

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.

Jan 24th, 2015
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Jan 24th, 2015

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Jan 24th, 2015
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Jan 24th, 2015
Dec 8th, 2016
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