Question 6 (12 marks) Refer to the graph below, answer the following questions. a. How many units of good are produced at the market equilibrium? (3 marks) b. How much is the external cot for each unit of good produced? (3 marks) c. How many units of good should be produced at the social optimum? (3 marks) d. In order to reach the social optimum, what should the government do? (3 marks)

Question 6 (12 marks) Refer to the graph below, answer the following questions. 32 28 Social Cost 24 20 Private Cost 16 10E! 200 300 400 500 Q How many units of good are produced at the market equilibrium? (3 marks) How much is the external cot for each unit of good produced? (3 marks) How many units of good should be produced at the social optimum? (3 marks) In order to reach the social optimum, what should the government do? (3 marks) (1-99\