Consider the market demand function for good X represented by P = 100 - 2X, where P is the price of good X. The marginal revenue mction derived from this demand is MR= 100 4X. Marginal cost of producing X is constant at 20 for any output level. Producing good X generates pollution and the marginal damage of pollution 15 constant at d for any output level (a) What IS the rst-best output level of X? (b) Suppose that X' 15 currently produced by a monopolist. What 13 the output level produced by the monopolist? Is the output higher or lower than the level in (a)? (c) Describe the rstbest policies to implement (a). (d) Suppose that there IS no way to regulate how many output the monopolist will produce and how much it will charge on good X and it 18 not socially optimal to shut down the rm. Then, what 1s the second-best policy? Is the second-best policy a piecemeal policy