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Suppose that in the production of a product, a company is polluting the local river that runs through a town. No other externalities exist. A.
Suppose that in the production of a product, a company is polluting the local river that runs through a town. No other externalities exist. A. Draw a graph that shows marginal private benefit, marginal social benefit, marginal private cost, and marginal social cost. B. Identify the area of deadweight loss to society. C. Should the government subsidize or tax the production of this gpod? How would the graph be impacted based on the appropriate government response? D. Identify another method the government could use {outside of a subsidy or tax) that could remedy the situation. Explain
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