-The above table shows the marginal benefits and costs from the production of fertiliser. There are no external benefits. If the market is perfectly competitive and unregulated, the efficient level of output could be achieved by setting a per tonne tax of

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In a perfectly competitive market, the efficient level of output is achieved when marginal cost equals marginal benefit. A per tonne tax of $30 would align the marginal cost with the marginal benefit, correcting any market inefficiency.

-The Above Table Shows the Marginal Benefits and Costs from the Production