Question: The equations below describe a negative production externality (TO ANSWER THIS QUESTION YOU HAVE TO DRAW ): Demand, MSB: P = 180 0.6Q Marginal private

The equations below describe a negative production externality (TO ANSWER THIS QUESTION YOU HAVE TO DRAW ):
Demand, MSB: P = 180 0.6Q
Marginal private cost: MPC = 120
Marginal social cost: MSC = 120 + 0.2Q
Calculate and interpret :
1. MEC (marginal external cost) function
2. Competitive output and Price
3. Socially optimal production and Price
4. The social cost of this externality. How to increase the efficiency?

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