1. Suppose an industry has 12 firms, each with the following marginal (pri- vate) cost function MC, = 4Q. (2 = 1, ..., 12) and the market demand function is QT = 50 - 0.5P (a) Find the equation for the industry supply curve (b) Graph both supply and demand and find the equilibrium price and quantity. 2. Using the information in problem 1, but now suppose that each firm's production causes external damage (pollution). The marginal external cost per firm is MEC, = 2Q (a) What is the marginal social cost per firm (MEC + MC)? If the marginal external cost was taken into account by all the firms, what would be the supply curve? (b) Solve for the equilibrium price and quantities. Graph your results (c) Using your results from problem 1, calculate the net welfare cost es when firms DO NOT take the MEC into account (hint: graph the CADemand curve and the supply curves from 1 and 2 in a single graph; the answer comes from calculating the "appropriate" area