The graph below depicts the market conditions Zhao, Inc., faces in t 2 MisB marginal social benefit, MR - marginal revenue, MSC - marginal social cost, and MPC marginal he zizzles market, where D = demand. al cost, and MPC= marginal private cost. 60 50 40 35 30 27.5 MPC 20 10 D MSB 0 100 150 200 t 300 400 500 600 Quantity 225 250 athe eamalrty Msc MSB market pones (a) What two potential sources of market failure exist in the market for Zhão's zizzles? Explain eách potential source of market failure using the information in the graph. (b) Using numerical values from the graph, identify Zhao's profit-maximizing quantity and price. (c) Assume a $15 per-unit tax is imposed on the zizzles market. Using numerical values from the graph, identify Zhao's profit-maximizing quantity and price. 多 (-top: (d) Zhao opposes the $15 per-unit tax analyzed above in part (c) and instead proposes a policy of no government intervention. If economic advisers are only interested in maximizing social welfare, would they support the policy of no government intervention? Explain.