Below is the hypothetical supply and demand diagram for iron supplements in Brazil with positive externalities. 1. Move Ej to the market's equilibrium. 2. Move E2 to the socially optimal equilibrium. Market for Iron Supplements 5.0 E E 4.5 4.0 3.5 3.0 2.5 2.0 1.5 1.0 D social D internal 0.5 0.0 100 200 300 400 500 600 700 800 900 1,000 Quantity (thousands) Price ($)

Q: 7. The economy has two firms. Firm 1 produces an output x that it sells in a competitive market and…

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A: "Since you have asked multiple question, we will solve the first question for you. If youwant any…

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A:

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A: Answer -

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A: The above given situation of an antibiotic causing negative externality is explained as follows:

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A: Externality: - it is a cost or benefit generated for the third party by the actions of other people.

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A: * SOLUTION :-  * The OPTION B is correct answer. *Explanation :-

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A: Dear student, you have asked multiple questions in a single post. In such a case, I will be…

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A: MCE1 = 4E1 +4 MCE2 = 4/3E2 +4/3 MSB = 10-E E = E1 +E2

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A: Since you have posted a question with multiple sub-parts, we will solve first three subparts for…