The following questions refer to the following diagram, whic…

The fоllоwing questiоns refer to the following diаgrаm, which shows the mаrginal social cost (MSC), the marginal private cost (MPC), and the marginal social benefit (MSB) associated with the production of a good in a market. The figure presents a graph of 3 lines in the first quadrant of a coordinate plane. The horizontal axis is labeled Quantity, and the vertical axis is labeled Price. There are two quantities on the horizontal axis. The quantity Q 2 appears about halfway across the horizontal axis. The quantity Q 1 is between the origin and Q 2 but is closer to Q 2 than it is to the origin. Four prices appear along the vertical axis. From bottom to top, the prices are P 1, P 2, P 3, and P 4. The distance between P 1 and the origin is larger than the distance between P 1, P 2, P 3, and P 4. P 1, P 2, P 3, and P 4 are an equal distance apart from one another. There are four points on the graph: e, f, g, and h. Point e is at coordinate Q 1 comma P 3. Point f is at coordinate Q 1 and P 1. Point g is at coordinate Q 2 comma P 4, and coordinate h is at coordinate Q 2 and P 2. A straight line, labeled D equals M S B, passes through points e and h and continues straight on both sides. Another straight line, labeled S equals M P C, passes through points f and h and continues as a straight line on both sides of those points. Lastly, a straight line, labeled M S C, passes through points e and g. This straight line continues down and to the left of point e until it hits the vertical axis. This line extends up and to the right of point g, ending in the upper right hand quadrant of the graph. The government can attempt to correct the externality by setting a