1. (a) Since you can consume a public good without paying for it, how does your consumer surplus change if you watch 4th of July fireworks- a public good for just one hour or until when it ends at midnight in a small town USA? How would the producer surplus change?

(b) As long as in any society there are people of different preferences both positive and negative externalities may persist. Elaborate.

(c) Do you think the providers of social media forums, such as Facebook, should regulate the behavior of users? If not why not? If so, how?