Note : To receive full credit , show work where applicable , type your answers and submit one copy per group on Gradescope . You must also properly ma your answers in Gradescopdf your response to a question covers more than one page , please assign multiple pages to that question . Question 1 - Second Best (50 points ) Use the following information to answer the questions below . Inverse demand : Average Cost = MC = C Pollution damage -20 - qq 1 2 (5) What are maffthat damngeese 0) B. (15 ) For a competitive industry , find the socially optimal production level and the necessary to achieve that level . C. (5) Building on your result in (B), what must be true for firms to produce ? D. (15 ) For parts D & E onlyC = 4/ = 2 If the producer is a monopolist , what is the socially optimal production level and the tax necessary to achieve that level ? E. (10) Has the monopolist's market power increased (use the Lerner Index as a proxy market power )Is the tax a second best " policy