German suburbs are expanding to more rural areas at the same time as pig farms are expanding in size. The smells emanating from the massive amounts of pig manure adversely affect property values. Imagine that theLittle Pigs Hog Farmis situated near 100 homes.

The following table shows, for each level ofLittle Pigs Hog Farm'soutput, the marginal cost (MC) of a hog, the marginal benefit (MB) toLittle Pigs Hog Farm, and the marginal damage (MD) done to property values:

Output

MC (in)

MB (in)

MD (in)

1

400

1,600

400

2

800

1,600

800

3

1,200

1,600

900

4

1,600

1,600

1,000

5

3,200

1,600

1,200

6

6,400

1,600

1,400

1. a)How many hogs doesLittle Pigs Hog Farmproduce?
2. b)What is the efficient number of hogs?
3. c)Suppose the owner ofLittle Pigs Hog Farmcan reduce the marginal damages of hog smells by two-thirds by modifying the hogs' diet. The modified diet increases the marginal cost of each hog by100. What is the efficient number of hogs?