Part 3 - Making Connections- The graph below shows the market for smoke alarms with the marginal social benefit (MSB), marginal private benefit (MPB), and marginal social cost (MSC). 6. Assume your friend says that installing a Price smoke alarm in her house results in a $80 positive externality because the alarm can save her life if there was a fire. Fully MSC $70 explain why this is not an example of a positive externality. $60 $50 7. Calculate the per unit value of the $40 external benefit when 20,000 units are produced $30 MSB 8. Calculate the per unit value of the $20 external benefit when 40,000 units are produced $10 MPB 0 10 20 30 40 50 60 70 80 Quantity (in thousands) 9. Calculate the area of deadweight loss at the free market price and quantity. 10. Calculate the area of deadweight loss at the socially optimal price and quantity. 11. Calculate the per unit dollar amount the government could subsidize consumers to achieve the allocationly efficient outcome. Explain how you got your