question attached

Question 1.2 In the following graph we see an externality, which means inefficiency exists. Suppose the Marginal Social Cost function is estimated as MSC= 45 + 0.75Q and the Marginal External Cost is estimated to be $3.75 per unit (constant). If the market price is given as $60 per unit and then what would be the market inefficiency amount (Q) and the estimated total inefficiency (Hint: Find the MPC using MSC=MPC+MEC and also Q* and Om by equating the Price to Marginal Costs). Price (dollars per unit) Social Marginal Cost Private Marginal Price Cost D Production