The private marginal benefit associated with a product's consumption is the PMB=360-4Q and the private marginal cost associated with its production is PMC=6Q. Furthermore, the marginal external damage associated with this good's productions is MD=20
1. Determine the numbers of more units of this product will the free market form than is socially optimal?
2. Determine the deadweight loss associated with the externality.
3. What tax T should it set to achieve the social optimum? To correct the externality, the government decides to impose a tax of T per unit sold.