2 60 points: lscction Two factories dump industrial waste into a stream. They can reduce their waste {abate}, but it is costly. The Marginal ICost of Abatement (MCA) for factory I is I'llI + 2A I, and for factory I is 5 + A2. where A; is the amount of pollutants that have been abated. The municipal government has opted for a Cap and Trade policy. The cap effectively requirm the t'nms to reduce total pollution by 31] units. Permits are issued to Firms 1 and 2 such that Firm 1 will have to abate by ll} units and Finn 2 will have to abate by ID units. a) If trade of permits is not allowed, what will be the costs of abament to each fum'? b) If trade of permits is allowed, what will be the abament and marginal cost levels for each rm? c} 1What will the total cost of abatement be after trade of the permits? d) If we assume that all pcmiits are boughtfsold at the marginal cost you found in part b}, what will be the net abatement costs for each fum