(Negative Externalities)Suppose you wish to reduce a negative externality by imposing a tax on the activity that creates that externality. On a supply-demand diagram, please show the tax needed to correct the externality if the amount of externality produced rises as output rises. Assume that the marginal private cost curve slopes upward.

(External Costs)Use the data in the table below to answer the following questions.

1. What is the marginal external cost of production?
2. What level is produced if there is no regulation of the externality?
3. What level should be produced to achieve economic efficiency?
4. Calculate the dollar value of the net gain to society from correcting the externality

Marginal Marginal Marginal Private Benefit Private Cost Social Quantity (demand) (supply) Cost $ 0 $ 0 $10 60 00 - O) 01 A OO - OUT A WN-O 10 11 12 10 11 13