Please draw a graph and explain it in detail.
It is good to release as soon as possible
3. Suppose you were asked to comment on a proposed policy to control oil spills. Since the average cost of an oil spill has been computed as SX, the proposed policy would require any firm responsible for a spill immediately to pay the government SX. Is this likely to result in the efficient amount of precaution against oil spills? Why or Why not? Explain.