Question: As it relates to your graph from Question 3, please explain in a narrative response of approximately two paragraphs (total): How you determined the monopolist

As it relates to your graph from Question 3, please explain in a narrative response of approximately two paragraphs (total):

  1. How you determined the monopolist output level Q1and price P1 when a negative externality was present. How do they compare to Q0and price P0 you found in Questions 1 and 2 in the absence of a negative externality (smaller, larger, the same) and why?
  2. How you determined the socially optimal output level QSO1 when a negative externality was present. How does QSO1 compare to the QSO you found in Questions 1 and 2 in the absence of a negative externality (smaller, larger, the same) and why? How does QSO1 compare to the Q1 (monopolist's output) you found in Questions 3 and 4 (smaller, larger, the same) and why?

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