9 ii. What is the overall total abatement cost to reduce the emissions under Proposal B? Show all calculations and explain your method. c. (6 points) Which proposal do you recommend to the staff and why?8 ii. What is the overall total abatement cost to reduce the emissions under Proposal A? Show all calculations and explain your method. b. (6 points, 3 each part) Proposal B assigns emissions reductions according to equi-proportional reductions to achieve the new overall emissions target of 15 tons. i. Explain what an equi-marginal reduction is and predict each firm's emission level under the policy.7 3. (18 points, as indicated) CAC policies Table 1 below shows the marginal abatement costs for three firms related to their quantity of emissions. Assume each firm originally emits 10 tons/week, so total emissions are 30 tons/week. Assume the local environmental agency imposes a new target of emissions to be 50% of the original emissions, that is to 15 tons per week in total. Agency staff present proposals for how to do so. You are asked to evaluate the staff proposals. TABLE 1 Marginal abatements costs ($/ton) Emissions (tons/week) Firm 1 Firm 2 Firm 3 $0 $0 $0 4 1 2 12 4 16 6 20 8 24 12 20 36 24 28 58 36 a. (6 points, 3 each part) Proposal A assigns emissions reductions according to the equi-marginal principle to achieve the new overall emissions target of 15 tons. i . Explain what an equi-marginal reduction is and predict each firm's emission level under the policy