3. You are an industry analyst that specializes in an industry where the market inverse demand is P
100  5Q. The external marginal cost of producing the product is MCExternal
10Q, and the internal cost is MCInternal
20Q.

a. What is the socially efficient level of output?

b. Given these costs and market demand, how much output would a competitive industry produce?

c. Given these costs and market demand, how much output would a monopolist produce?

d. Discuss actions the government could take to induce firms in this industry to produce the socially efficient level of output.