There is a large steel factory next to a private lake owned by a single individual. Pollution from the factory contaminates the lake, reducing the stock of fish and other aquatic animals. The pollution runoff affects only the owner's private lake. The marginal benefit to the steel factory of pollution is MB = 400 2Q, where Q is the amount of water pollution in tons. The marginal cost to the lake owner is MC = 3Q. Assume that the amount of pollution damage is measurable, benefit and cost curves are known with certainty, and that there are no transaction costs for negotiation. With this information, answer the following questions: What is the efficient quantity of pollution? Illustrate on a graph. Recall the Coase Theorem, which indicates that the assignment of property rights to one party or the other is irrelevant when determining the efficient allocation of resources. First assume that owner of the lake has the property rights. Calculate the net gains or loses for both the owner and the factory. What is the total net social welfare?