5. a) Inefficient Environmental Policy: Consider a city where each polluting firm initially generates two tons of pollution. Half the polluters (type L) could cut back pollution at a cost of $4 per ton, and the other half (type H) could cut back at a cost of $30 per ton. The city is considering two alternative environmental policies: i) Pollution tax: Each firm would pay a tax of $5 for each unit of pollution. 2 ii) Uniform-reduction: Each firm would be required to cut its pollution in half, to one ton. a) The tax policy is [more, less] efficient than the uniform-reduction policy because ...... b) The pollution tax causes a [smaller, larger] shift of the city's labor-demand curve because ........ c) The city is more likely to experience an increase in total employment under the policy because ........ .... .. .... d) Illustrate with two graphs, one for each policy. r