(Solved): The graph illustrates the market for uranium with no government intervention. The uranium mines du ...

The graph illustrates the market for uranium with no government intervention. The uranium mines dump their waste in a nearby river. The marginal external cost of the dumped waste is equal to the marginal private cost of producing the uranium (that is, the marginal social cost of producing the uranium is double the marginal private cost). If the uranium mines own the river, how much uranium is produced? Draw a point to show marginal social cost if production is 200 tonnes. Label it \( 1 . \) Draw the MSC curve and label it. Draw a point to show the quantity of uranium produced and the marginal social cost at this production point. Label it \( 2 . \) \( \gg \gg \) Draw only the objects specified in the question.