What is the 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?