You are an industry analyst that specializes in an industry where the market inverse demand is P = 200 - 3 Q.

You are an industry analyst that specializes in an industry where the market inverse demand is P = 200 - 3Q.

The external marginal cost of producing the product is MCExternal = 9Q, and the internal cost is MCInternal = 16Q.

What is the socially efficient level of output?

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

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

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