Symmetry of External Market and Pollution Policies 1. Complete the following problem. There are Two Markets. A good Market exists with a demand and a marginal private cost curve. a. Fill in the chart below and find the MC curve. Show work (find slope and then use any point to define PMC). Q I TVC, PMC, where the price of each input is: PI = $2.5 1.8 4.8 9 14.4 Demand for Q is defined by: P. = 33.5 -5Q b. Find the Private Equilibrium for the Market for Q. Graph on market for Q attached. Q production destroys some of the External Good, E. For every Q produced, one E is destroyed. Yet when Q = 0, E = 4. (So when Q = 1, E = 3.). Demand for E is defined by: PE = 30-7E. Graph demand on Attached Graph. c. Find the Marginal Damage Cost Below. Use Demand and Show work (May Help to Use Graph Attached). MDC. AWNO d. Find the Equation for MDC e. Define Marginal Social Cost. f. Find the Optimal Level of Production for Q, the Price of Q; and locate the Optimal level of E associated with this new Q equilibrium