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please answer Look at Diagram 3. There is a negative externality in this market. Answer questions 27 - 31, which refer to the diagram. Diagram

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Look at Diagram 3. There is a negative externality in this market. Answer questions 27 - 31, which refer to the diagram. Diagram 3 MSC MPC 27. [3] The allocatingly efficient level of production is a) Q. b) Q, 28, [4] The total amount of external cost from the negative externality ( ) MEC ) is a) acfb b) cef d) cefd 29. [2] In order to get to the allocatingly efficient level of output, the government should a) offer a Pigouvian subsidy bj impose a Pigouvian tax 30. (4] The sum total of the tax collected or subsidy offered (depending on your answer to question 29) is a) aclb bj cefd C) nodb

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