Question: This graph represents the tobacco industry. a . Does this industry create a positive or negative externality? ACCORDING TO THIS GRAPH, is the externality caused

This graph represents the tobacco industry.
a. Does this industry create a positive or negative externality? ACCORDING TO THIS GRAPH, is the externality caused by production or consumption?
b. Without government intervention, what is the expected market outcome if consumers and producers only act in their own best interest?
c. What is the socially optimal price and quantity?
d. Does the market overproduce or underproduce the good compared to socially optimum outcome?
This graph represents the tobacco industry. a. Does this industry create

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