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Based on MAC= 40 2E and MD=3E, answer the following. (a) What is the socially efficient tax rate? (b) What is the net social benefit

Based on MAC= 40 2E and MD=3E, answer the following.

(a) What is the socially efficient tax rate?

(b) What is the net social benefit from emission reduction if the level of emissions is reduced to the socially desirable/optimal level of emissions (E*)?

(c) What is the net social benefit from emission reduction if all emissions are reduced (i.e., at E=0)?

[The work you show for this question should include an appropriate diagram based on the functions provided.

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