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Zenobia gets a new car and has to decide how long to drive every day. Let Q be the amount of time for which Zenobia

Zenobia gets a new car and has to decide how long to drive every day. Let Q be the amount of time for which Zenobia drives. Zenobia's marginal benefit from driving equals 30 Q. The marginal cost of driving (which is the cost of gasoline) equals 5 + 0.25Q. 2 Driving generates both positive and negative externalities. On the negative side, Zenobia drives very fast early in the morning, and the sound of her driving wakes up her 5 neighbours (although Zenobia has no idea about this). This imposes a marginal external cost of 1 on each of her 5 neighbours per unit of time that Zenobia drives. On the positive side, Zenobia works for a charitable organization and the work that she does generates external benefits. The marginal external benefit equals 15 0.5Q. 3. (5 pts) Zenobia finds out one day that her driving has been waking up her neighbours. Horrified, she decides to internalize the external cost she imposes on her neighbours. That means Zenobia's new marginal cost equals her own personal marginal cost of driving (5 + 0.25Q), plus the marginal external cost she imposes on her 5 neighbours. What will be Zenobia's new choice

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