1. A number of firms have located in the western portion of a town after single-family residences took up the eastern portion. Each firm produces the same product and in the process emits noxious fumes that adversely affect the residents of the community.a. Why is there an externality created by the firms?b. Do you think that private bargaining can resolve the problem? Explain.c. How might the community determine the efficient level of air quality?2. A computer programmer lobbies against copyrighting software arguing that everyone should benefit from innovative programs written for personal computers and that exposure to a wide variety of computer programs will inspire young programmers to create even more innovative programs. Considering the marginal social benefits possibly gained by this proposal do you agree with this position?