You have just been appointed as the County Commissioner of Hazard County. After your first day of work, you realize that many people talked to you about externalities that day. Based on your conversations today and your economics experience, you conclude that when externalities are present, the free market outcome is not efficient Furthermore, you conclude that when there are negative externalities present, free markets " " | produce too much , and when there are positive externalities present, free markets produce too little . To help the citizens of Hazard County understand the effects of externalities, you draw the following figure. Assume there is a free market. 1.) Using the line drawing tool, draw a marginal revenue curve. Label your curve '"MR'. 2.) Using the line drawing tool, draw a marginal cost curve. Label your curve 'MC". 3.) Using the point drawing tool, indicate the equilibrium point in the private market. Label your point 'E4", Now assume that the producer is creating a negative externality through the production process. 4.) Using the line drawing tool, draw a new curve that reflects the impact of the externality. Label your curve appropriately. 5.) Using the point drawing tool, indicate the new equilibrium in the private market. Label your point 'Eo', 6.) Using the triangle drawing tool, shade in the area of the forgone benefit of the externality. Carefully follow the instructions above and only draw the required objects. Price L0 T T T T T T T T T 1 1 2 3 4 5 6 7 8 9 10 Quantity