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The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby

The supply and demand conditions facing a firm that makes widgets and generates a negative externality by dumping a highly toxic sludge in a nearby river is given in the table below.

Price

Quantity Demanded

Quantity Supplied without Paying Social Costs

Quantity Supplied after Paying Social Costs

100

0

120

75

80

10

100

50

55

30

90

30

40

55

85

25

30

80

80

20

20

100

65

15

The equilibrium price and quantity when only private costs are taken into account are

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