(Figure 17.13) According to the graph, MCP is the marginal cost of pollution, MAC is the marginal abatement cost, and the government's erroneous estimate of the marginal abatement cost is estimated MAC. Answer the following questions. 
a. What is the socially optimal level of pollution?
b. If the government uses a quantity restriction, how much pollution will be emitted?
c. If the government uses a price-based restriction, how much pollution will be emitted?
d. What is the deadweight loss from the quantity restriction and from the price-based restriction?
Definitions:
Probable Future Sacrifices
The expected relinquishment of assets as a result of obligations.
Liabilities
Economic obligations or debts owed by a business to others, typically arising in the course of its operations.
Economic Benefits
Benefits that can be quantified in monetary terms and usually include profits, revenues, and savings.
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