please answer the questions with explanations

1. The socially optimal level of pollution is c. market outcomes only. a. less than that created by the market, but not zero. d. either private or government actions. b. more than that created by the market. e. neither private nor government actions. c. whatever the market creates. 4. The Coase theorem asserts that, under the right cir- d. determined by firms. cumstances, inefficiencies created by externalities can e. zero. be dealt with through 2. Which of the following is a source of negative a. lawsuits. externalities? b. private bargaining. a. loud conversations in a library c. vigilante actions. b. smokestack scrubbers d. government policies. c. a beautiful view e. mediation. d. national defense 5. Which of the following makes it more likely that pri- e. a decision to purchase dressy but uncomfortable vate solutions to externality problems will succeed? shoes a. high transaction costs 3. Inefficiencies created by externalities can be dealt with b. high prices for legal services through c. delays in the bargaining process a. government actions only. d. a small number of affected parties b. private actions only. e. loosely defined legal rights2. a. Define the marginal social cost of pollution. b. Define the marginal social benefit of pollution, and explain why polluting more can provide benefits to a firm even when it could produce the same quantity of output without polluting as much. c. Define the socially optimal level of pollution