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 $ 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? es 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