You are an industry analyst that specializes in an industrywhere the market inverse demand is P = 200 - 2Q. The externalmarginal cost of producing the product is MCExternal = 9Q, and theinternal cost is MCInternal = 14Q. Instructions: Enter yourresponses rounded to the nearest two decimal places. a. What is thesocially efficient level of output? units b. Given these costs andmarket demand, how much output would a competitive industryproduce? units c. Given these costs and market demand, how muchoutput would a monopolist produce? units d. Which of the followingare actions the government could take to induce firms in thisindustry to produce the socially efficient level of output.
