$2.$ Based on the company's total abatement cost if the government forces each company to abate half the mandated abatement level. Do the two firms have an economic i

$3.$ Based on your explanation in question $2,$ please quantify and propose the cost savings associated with a cost$-$effective abatement allocation that could be achieved through trading. Please be sure to outline and clearly explain the steps to your computation as if you are explaining it to the government officials.

$4.$ If the government is contemplating imposing a tax of $$15$ per unit of abatement and still upholds a uniform abatement standard, how much abatement will each company decide to do and what would be the total abatement cost to each company?

$5.$ Now suppose the government decides to issue tradable permits and allocates them equally to each company. At what price must each tradable permit be set to achieve the cost$-$effective solution, and how many permits will be exchanged between the two companies.