1. Assume an economy of two firms and two consumers. The two firms (A and B) pollute. Firm A's marginal abatement cost is: MAC, = 5 e,. Firm B has marginal abatement cost MAC: = 8 2es. Each of the two consumers experiences marginal damages from aggregate emission e of MD(e) = e wheree = e, + . a. Find the optimal level of emissions. b. Find the optimal Pigouvian tax. c. Calculate emissions from each firm. Hint: Aggregate MAC and MD first, then solve. 6 points