In this question, you will discuss the general case of negative externalities and an interesting outcome of a monopolist's presence in a market with a negative externality.

• 1. In the case that you've illustrated in Questions 1 and 2, what was the impact of a monopolist's presence on a market without negative externalities? Did the monopolist hurt the overall social gain (i.e., total surplus or total welfare)? Please explain. (Suggested length: One paragraph). (10 points)
  2. In the case that you've illustrated in Questions 3 and 4, what was the impact of a monopolist's presence on a market with negative externalities? Could a monopolist improve the competitive market outcome for a good or a service with negative externalities (and no government intervention to correct it)? Why or why not? Please explain. (Suggested length: One to two paragraphs). (15 points)