A factory is situated next to a dormitory for nurses who work night shifts. The factory produces 120 units of humanoid robots a day. The production process is rather noisy, and the nurses often complain that their sleep is disturbed. The following diagram depicts the marginal private cost (MPC) and marginal social cost (MSC) of the robot factory production. The robot market is competitive and the market price is $340. The government is considering implementing a tax-subsidy enforced compensation from the factory to the nurses for the costs imposed.

Based on this information and the diagram, which of the following statements is correct?

a.The nurses are better off than they would be under the Pigouvian tax.

b.The total compensation paid would be $6,400.

c.The factory's profit would be the same as under the Pigouvian tax.

d.The factory's MPC does not equal the MSC.