2. Two firms (Y and Z) emit pollution. Their marginal abatement costs are MACy= 80 16ey and MAC: = 20 2e;z, where ey and ez represent tons of emissions of firms Y and 2, respectively. Suppose the EPA sets a standard of e = 6 tons of emissions, and wants to achieve it using an emissions tax system. a. Find the cost-effective allocation and the tax per ton of emissions that would achieve the standard e = 6. 3 points b. Calculate the total costs for each firm, including total abatement costs and tax payments. 3 points c. Suppose that instead of controlling emissions, the Environmental Protection Agency (EPA) wants to control ambient concentration at a receptor R. The transfer coefficients for firms Y and Z are & = 1.0 and = 0.5, respectively. The standard set by the EPA at receptor R is ag = 7 units. Calculate the cost effective allocation of emissions, the tax per unit of the ambient concentration for each firm necessary to achieve this allocation, and the total tax payment of each firm. 4 points