2. [4 points] Good X is produced by a competitive domestic industry in the province of Rostov and sold at a constant world market price of $60. The (private) total cost function in this domestic industry is C (X) = 100 + 15X + 1X. In addition to these private costs, the production of X causes external costs valued at $20 per unit. a. How much X will the industry produce in the absence of government policy to address the external costs? What are industry profits? What are the total external costs generated? b. What is the socially efficient amount of X produced in Rostov? What is the net welfare loss associated with your answer in part a)? Represent this welfare loss as a shaded area in the appropriate diagram. c. Suppose the Rostovian government imposes a $10 per unit tax on the production of X. What is the effect of this policy on the welfare loss calculated in part b)? Break down this change in the net welfare loss into: 1) change in producer surplus, 2) change in government revenue, and 3) change in external effects. d. Repeat part c) for a tax of $30 per unit of X.