The above diagram shows the private and social marginal costs (PMC and SMC) associated with the production of a fossil fuel energy (such as natural gas, oil, or coal). The demand curve shows the private marginal benefit (PMB) curve for users of fossil-fuel based energy (FFE). There are no demand side externalities so the Demand curve is both the PMB and the SMB curve. The government provides a subsidy to fossil-fuel makers of $s per unit. There are no other policies in place. The [ Select ] vertical horizontal distance between the PMC and SMC curves corresponds to the [ Select ] abatement negative externality positive externality imposed by each unit of fossil-fuel energy (FFE) production. The socially optimal quantity of FFE is  [ Select ] Q3 Q1 Q2 The deadweight-loss from the FFE subsidy is  [ Select ] R+F+H D+E F+H O+P The deadweight-loss from no intervention (competitive equilibrium under laissez faire) [ Select ] D+E+I+N+O+P R R+F+H D The price the consumer pays net of the subsidy is    [ Select ] P3-s P3 greater than P2 The price that firms receive per unit they produce (in the presence of the subsidy)  is [ Select ] less than P3 greater than P2 P2 P1 If the government eliminated the subsidy and replaced it with the socially optimal tax on each unit of FFE, then [ Select ] the new deadweight loss would be area R consumer surplus would fall by the amount shown in area L the price consumers pay (including the tax) would rise to P1 the new deadweight loss would be area D+E Self-interest predicts that a producer economic interest group would lobby for  [ Select ] the optimal tax laissez faire (no intervention) the subsidy s Friedman's theory of Corporate Social Responsibility implies that, when the government provides the subsidy, [ Select ] it is socially responsible for firms to lobby for the optimal tax it is socially responsible for firms to produce output Q2 it is socially responsible for firms to produce Q3 under the subsidy