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Question 1( Use info on pictures i want answers to be handwritten by expert and...

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Economics

Question 1( Use info on pictures i want answers to be handwritten by expert and i want a real answers on the graph also drawnby hands showing all the result and answers of questions on graphlike the one in the picture, what i mean i need to see the realgraphical answers on the graph) M is a flow uniformly-mixingpollutant. Its release allows to generate marginal benefitsB^(')(M)^("Actual ") to polluters and consumers in the form ofconsumers and producers surplus and generates marginal damagesD^(')(M). The true marginal benefits are not known to the decisionmaker, who believes that the marginal benefit curve isB^(')(M)^(GOV). Identify the socially optimal level of pollutionM^(**) and briefly discuss the result. Evaluate (graphically) thedeadweight loss if the government sets a standard (command-and-control) given the information at its disposal. Evaluate(graphically) the deadweight loss if the government sets apigouvian tax given the information at its disposal. Brieflydiscuss the results.

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