2. The graph below depicts the market conditions Zhao, Inc., faces in the zizzles market, where D = demand, MSB = marginal social benefit, MR = marginal revenue, MSC = marginal social cost, and MPC = marginal private cost. Price Per g Unit ($) 50 MSC 40 35 MPC 30 27.5 20 10 D = MSB 100 150 200 1 300 400 500 600 Quantity 225 250 MR (a) What two potential sources of market failure exist in the market for Zhao's zizzles? Explain each potential source of market failure using the information in the graph. (b) Using numerical values from the graph, identify Zhao's profit-maximizing quantity and price. (c) Assume a $15 per-unit tax is imposed on the zizzles market. Using numerical values from the graph, identify Zhao's profit-maximizing quantity and price. (d) Zhao opposes the $15 per-unit tax analyzed above in part (c) and instead proposes a policy of no government intervention. If economic advisers are only interested in maximizing social welfare, would they support the policy of no government intervention? Explain