Assume that the market for good Z is perfectly competitive and the production of good Z creates a negative externality.

1. Draw a correctly labeled graph of the market for good Z and show each of the following.
   1. The marginal private cost and marginal social cost of good Z, labeled MPC and MSC, respectively
   2. The market quantity, labeled Q_m
   3. The allocatively efficient quantity, labeled Q_s
   4. The area of deadweight loss, shaded completely
2. Assume that a lump-sum tax is imposed on the producers of good Z. What happens to the deadweight loss? Explain