The government agency in charge of such matters estimates that each additional Thneed produced costs society $4.00 in total external costthat is, the sum of the cost due to lost Bar-ba-loot-habitat, and the emission of smogulous smoke and gluppity glup. Under pressure from the small, but relentless, Lorax Lobby, the agency has agreed to curtaii these impacts, and it has hired you to advise it by (1} nding out how big a problem the external costs are, and {2} helping to devise a way of achieving a socially optimal level of Thneed production. a] Unfortunately, the agency has forgotten how it came up with that $4-perThneed number, so your rst task is to suggest an appropriate method for estimating the costs associated with the following effects. The agency is sure it used three different methods, however, so be sure you list three different methods, and explain how you think the method would have been used in deriving the agency's estimate. [Hint it will help if you first think about what the biophysical effects of these are, then think about how the effects would affect human welfare and, therefore, economic well-being] a. Loss of Bar-ba-Loot Habitat. Method 2 Explain: b. impact of Smogulous Smoke: Method = Explain: c. impact of Gluppity Glup: Method = Explain