Factory XYZ pollutes the air when producing widgets. The cost of reducing the pollution is $13,000. The local neighborhood would prefer to have clean air and values the clean air at $10,000. Instructions: Enter your answers as a whole number. a. The marginal cost of reducing the pollution is $ L............: b. The marginal benefit of reducing the pollution is $ c. The marginal cost is (Click to select) |the marginal benefit. d. Assuming no transaction costs, which of the following outcomes are possible? Instructions: In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click the option twice to empty the box. The neighborhood has the rights to the air and no pollution will occur. Factory XYZ has the rights to the air and will continue to pollute. Factory XYZ has the rights to the air but accepts a payment of $7000 from the neighborhood and the firm does not pollute. The neighborhood has the rights to the air but accepts a payment of $12000 from Factory XYZ and the firm pollutes