Hello, can you please help me with this microeconomics problem. Thank you.

Smith can produce with or without a lter on his smokestack. Production without a lter results in greater smoke damage to Jones. Let Smith's and Jones' payoffs, as function of whether or not Smith produces with a lter, be described by the table below. Table Smith's action With lter Without lter Smith's payoff 200 245 Jones's payoff 35 85 (a) For what action by Smith is total welfare ('gains from trade') maximised? (b) In the absence of any government measures, and if transfers between the parties are impossible, which of the two actions does Smith take? (0) Let there be no government intervention, but let parties be able to make transfers to one another and assume that negotiation costs are zero. Describe the new situation in the table. If your answer involves transfers being made between the parties, described the bounds within which these transfers must lie (in terms of the book: the bounds are the minimum acceptable offer and the fallback (reservation) option). In the next two sub-questions, we continue to assume that transfers are possible and that negotiation costs are zero. (d) Let Smith be liable, meaning that Smith needs to reimburse any damage done to Jones. Describe the new situation in the table. (e) Let the government impose a tax equal to any negative extemality induced. Adapt the table to these new circumstances and describe the new situation