Business, 16.06.2020 10:57, ellycleland16

2. The use of plastic water bottles creates external costs as the result of plastic production, bottle transportation, litter, and waste disposal. Draw a correctly
labeled graph showing how the market will determine the quantity of water
bottles purchased. On the same graph, show the marginal external cost, the
socially optimal quantity of water bottles, and the size of a Pigouvian tax that
could be used to achieve the socially optimal quantity of water bottles.

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2. The use of plastic water bottles creates external costs as the result of plastic production, bot...