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1. Demand is given by P = 40 - Q. Supply is given by P = Q. The marginal external cost is given by 10.

1. Demand is given by P = 40 - Q. Supply is given by P = Q. The marginal external cost is given by 10. A. Calculate the competitive equilibrium price and quantity. B. Calculate the efficient price and quantity. C. Calculate the deadweight loss of the externality. D. Now imagine there is a per unit tax imposed on firms of 6. Calculate the competitive equilibrium price and quantity with this tax. E. Calculate the deadweight loss of the externality with the tax

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