Ch. 12 - Negative Externalities

Answer all question 1-5 please.

\f. What is the market output level and price? [1 points} Draw the social cost curve on the graph after including the external cost of pollution. [2 points} Label the socially optimal output level and price on your graph [you may need to estimate the numbers}. [2 points] . Compare the socially optimal output level and price to the market output level and price, what do you nd out about the changes of I:|uantit'_n.ur and price, and vet-Iv. {2 points} Suppose the government levied a per-ton tax on production. HovlI much should this tax be to internalize the external coat? (1 points]