Short Response. In answering the question, you should emphasize the line of reasoning that generates your results; it is not enough to list the results of your analysis. Include correctly labeled diagrams, if useful or required, in explaining your answers. A correctly labeled diagram must have all axes and curves clearly labeled and must show directional changes. PRICE ($) 13 12 Marginal Social Cost 7 Marginal Private Cost 4 Demand = Marginal Social Benefit QUANTITY OF GOOD X Marginal Revenue(d) Suppose that good X is produced in a perfectly competitive industry. Answer each of the following. (i) Using labeling from the graph on the previous page, identify equilibrium output in the absence of regulation. Explain how you determined your answer. (ii) To produce the socially optimum output, indicate whether the government should tax or subsidize the firms in the industry. (iii) Calculate the dollar value of the needed per-unit tax or subsidy