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abbot electric is a utility firm emitting a particular pollutant. The marginal abatement cost pollution (MAC) and the damage(MDF) it causes are given below: MAC
abbot electric is a utility firm emitting a particular pollutant. The marginal abatement cost pollution (MAC) and the damage(MDF) it causes are given below: MAC =10-0.5Q MDF = 2.5 + 0.25 Q where Q is the volume of emission in tons per day. (1)draw the marginal abatement cost curve(MAC) and the marginal damage functjo for Abott Electric. In the absence of any regulation how much will the firm emit? (2) find the optimal level of pollution for this firm. what is the total cost to society associated with the optimal level of pollution
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