The market for coal fired energy can be considered to have a negative production externality for several reasons. For the purpose of this assignment question, we will consider the negative production externality to be the air pollution that it causes to nearby industries. Draw a diagram that represents the market for coal fired energy with this negative externality. Label the socially optimal output and the privately optimal output . Then, label the area that represents the deadweight loss. Briefly comment on the quantity traded in this market without government intervention compared to the socially optimal outcome. (5 Points) The government wants to force the coal fired energy producers to produce the socially optimum level of output. They decide to introduce a maximum quota on the amount that they can produce, . If: What should the government set the quota to be? (1 Point) Suppose instead that the government opts to impose an additional tax on producers of coal fired energy. What should the government set the size of the per unit tax to be, to ensure that the socially optimum quantity is traded? (2 Points)