Question: I need help please with question 6 Attached question 5 as well for reference 5. A competitive industry producing paper releases toxic chemicals into a
I need help please with question 6
Attached question 5 as well for reference


5. A competitive industry producing paper releases toxic chemicals into a nearby river. Based on an assessment of its demand schedule and private cost supply schedule (which does not account for the release of chemicals that damages the river) the industry produces output of (1* per year and sells it at a price of P*. Draw a diagram to illustrate this outcome. Now, on your diagram, show the industry's social cost supply schedule that includes the damages to the river. If the industry operated on the social cost supply schedule, how would its output level and price change? What is the efficient amount of output for this industry to produce? Why? What is the efficiency loss (deadweight loss) associated with output level (1*? Does the government have a possible role to play in getting the industry to produce on the social cost supply schedule? in question #5, suppose that a competitive industry's inverse demand curve is P = 110 20. and the industry's private cost supply schedule is P = 5 + 0.50. Find P' and 03'. Draw a diagram to show consumer surplus, producer surplus, total revenue, total cost, and total surplus. Also, nd the dollar value for these concepts algebraically. Now nd the corresponding solution for price and quantity if the industry operates on the social cost supply schedule P = 35 + 05G. Find new values for consumer surplus, producer surplus, total revenue, total cost, and total surplus
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