(Answered) The graph below shows the marginal social benefit and

Management Studies

The graph below shows the marginal social benefit and marginal social cost of pollution.

What is the optimal level of pollution shown on the graph?
Would a new regulation that resulted in the level of pollution shown by Q3 be considered too lenient? Please explain.
Would the dollar amount of the Pigovian tax necessary to make this market operate efficiently be $10, $40, $50, $60, or $100?
If new research indicated that the negative effects of a this pollutant were worse that we had though which of the curves would shift, and in what direction?

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