Figure 5.3 illustrates the case of an industry that generates external social benefits with its production. Draw a supply and demand graph for an industry that creates external costs with its...

Figure 5.3 illustrates the case of an industry that generates external social benefits with its production. Draw a supply and demand graph for an industry that creates external costs with its production. Compare and contrast the market-determined price and output level with the socially optimal price and output levels.