[The drainage of waste products from the chemical factory, Ultra Chemicals, situated along the banks of the Misty River has led to the formation of a dead zone in the river that cannot support aquatic life.]

1. [Without any government intervention, will the Ultra Chemical produce a socially optimal quantity? Why or why not? Explain your answer in 200 words or less with the help of suitable diagrams. (5 marks)]
2. [Does Ultra Chemical impose a deadweight loss on the society? Explain in 100 words or less. Draw the diagram to show the deadweight loss to the society. (3 marks)]

[How can a government intervene to improve upon the outcome from societys point of view? Explain in 100 words or less. Diagram not needed. (2 marks)]