You are an industry analyst that specializes in an industry where the market inverse demand is P = 200 4Q. The external marginal cost of producing the product is MC_External = 6Q, and the internal cost is MC_Internal = 12Q.

a. What is the socially efficient level of output?

___ units

b. Given these costs and market demand, how much output would a competitive industry produce?

____-units

c. Given these costs and market demand, how much output would a monopolist produce?

_____units

d. Which of the following areactions the government could take to induce firms in this industry to produce the socially efficient level of output.

In order to receive full credit, you must make a selection for each option. For correct answer(s), click the box once to place a check mark. For incorrect answer(s), click twice to empty the box.

• Nonrival consumption
• Pollution permits
• Pollution taxes