A company with C = 100q+2q^2 produces social damages of D = 150q + 0.5q^2. Demand is P = 1000 - Q. a. Compute and compare output q under the non-cooperative (private) solution and cooperative (optimal) solution. b.Calculate and illustrate the efficiency loss. Find CS = Benefits - Expenditure and PS = Revenue - Cost C. Show how a per unit tax can be used to give a cooperative solution.

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