Please answer the following questions.

Externalities Graphing Practice A chemical firm is producing a good that causes a negative externality. 13. Using a demand and supply graph, show market equilibrium using the labels, Fe and Qe. Label S as MPC. Amend the graph to show the level of optimum output Qo. Label the new S curve as MSC. P Q 14. What are the ways that the firm can be forced to correct the pollution? A fire alarm company sells its product in the market. The product results in positive externalities. 15. Using a demand and supply graph, show the market equilibrium using the labels, Pe and Qe. Label D as MPB. Amend the graph to show the level of optimum output Qo. Label the new D curve as MSB. P Q 16. What are ways which society uses to gain the socially optimum benets from the re alarms