Helllo can you please help me with this question thank you, There are two polluters in the region, Firm 1 is currently emitting 100 units of pollution and Firm 2 is currently emitting 120 units of pollution for a total of 220 units of pollution in the region. The government wants to reduce total pollution by 80 units. For simplicity, ignore enforcement costs. The total and marginal abatement costs of each polluter are as follows: TAC1 = A1+1.5A12 TAC2 = 3A2 + A22 MAC1 = 1 + 3A1 MAC2 = 3+2A2 Suppose each firm is issued the same (equal) number of pollution permits designed in total to achieve the 80-unit reduction. What is the equilibrium quantity of abatement by firm 2? Question 10 options: 32.4 40 120 47.6
Helllo can you please help me with this question thank you, There are two polluters in the region, Firm 1 is currently emitting 100 units of pollution and Firm 2 is currently emitting 120 units of pollution for a total of 220 units of pollution in the region. The government wants to reduce total pollution by 80 units. For simplicity, ignore enforcement costs. The total and marginal abatement costs of each polluter are as follows: TAC1 = A1+1.5A12 TAC2 = 3A2 + A22 MAC1 = 1 + 3A1 MAC2 = 3+2A2 Suppose each firm is issued the same (equal) number of pollution permits designed in total to achieve the 80-unit reduction. What is the equilibrium quantity of abatement by firm 2? Question 10 options: 32.4 40 120 47.6
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