environmental economics / externality

Question \#1: Use the data in Table 1 below to answer the questions that follow. The production of plastic is associated with pollution and other costs to those who do not purchase the plastic. Assume these combined costs amount to $250/ unit. a. Plot the MPB, MSB, MPC and MSC curves for plastic solve for the market equilibrium. b. Identify the socially optimal output and price. Highlight this price and quantity level in your graph. c. Calculate the dead weight loss (or inefficiency) that occurs at the market outcome and show this area in your graph. d. What is this situation called? Question \#1: Use the data in Table 1 below to answer the questions that follow. The production of plastic is associated with pollution and other costs to those who do not purchase the plastic. Assume these combined costs amount to $250/ unit. a. Plot the MPB, MSB, MPC and MSC curves for plastic solve for the market equilibrium. b. Identify the socially optimal output and price. Highlight this price and quantity level in your graph. c. Calculate the dead weight loss (or inefficiency) that occurs at the market outcome and show this area in your graph. d. What is this situation called