Suppose a monopoly is producing cars with marginal cost MC(Q)=2. Demand for cars is given by P(Q)=12Q. Car production generates emissions E such that 1 car makes 2 ton of pollution: E=2Q. The marginal damages from pollution are MD(E)=5. a. (5 points) What is the monopolist's profit maxmimizing level of cars and what is the socially efficient level of cars? Is the monopolist over or under producing? b. (5 points) What is the deadweight loss from the monopolist's unregulated choice? c. (5 points) What is the socially efficient tax on cars? d. (5 points) Is this more or less than the marginal damage of one car? Why? e. (15 points) Suppose MD(E)=2. Repeat parts b-d