(Total Points 25}: A new textile mill has located next to the lang Hui river. There is a fishing village nearby the river. Unfortunately, there is no painted lady to help this village out. Instead you are an economist working with the following marginal benets and costs for this market, where Q is the number of clothing pieces produced and P is the price per piece. The demand is P = 800 0.50 and supply is = 20 + 0.30. The external cost imposed on the shing village is MEC = 0.40 a. Find the market equilibrium and the efcient equilibrium points. b. Suppose the mill has gained the rights to the lake, and it is negotiating with the village. Some residents of the village are willing to pay the mill to produce less output. For the 800lh unit of output, determine the range within which payment would be acceptable to both parties. c. Draw the demand, supply, social marginal cost. Do not forget to label points found in a and the bargaining range for this case