Assume an otherwise well-functioning completive market with the following

Assume an otherwise well-functioning completive market with the following

Demand; P=1050-0.1Q; private cost supply; P=50+0.2Q production of each unit of output Q above leads to a
marginal external cost of $150, which implies social-cost supply; P=200+0.2Q

A. Compute the dollar amount of total external cost generated when firms can freely pollute in the market
equilibrium above and drive the actual total net gain from trade? Show your work?
B. Assume firm pays a tax and thus operate along the social cost supply curve, compute the “social optimal”
equilibrium P, Q, and total actual gain from trade. Assume the tax revenue fully offsets any remaining
negative externalities. Show your work?