Electricityproducing firms are using coal as the main energy,r source. They are discharging pollution into the environment. It is causing considerable environmental damage and therefore imposing an external cost on society. Suppose the following graph illustrates the situation in the coal market. What is the result in the fossil fuel market? How the government can internalize external costs using a tax on coal to bring about an efficient level of production? What should the value of the tax be? Who will pay the tax, consumers or producers? {4 marks) (75 100 words) s, = Social cost $1 = Private cost 120 150 o [000}