Can you especially explain question C and D in depth.

Suppose that the marginal damages associated with a rm's level of emissions (E) is given by the equation: MD = E. With its current technology, the rm's marginal cost of abatement is given by the equation: 2 MACl = 10,000 E a) Determine the socially optimal level of emissions (E *) and show graphically. (2 marks) b) Suppose that the government imposes a standard equal to the level of E * that you derived in part a). You can assume the rm complies with the standard and reduces its emissions accordingly. In this case: i) Compute the fnm's total private costs and show graphically. (2 marks) ii) Compute total social costs and show graphically. (2 marks) c) Suppose now that the rm can adopt a new technology that reduces its marginal abatement costs to MAC; = 5, 000 EE. Calculate the reduction in the rm's total private costs if it adopts the new technology and show graphically, in the following two cases: (In other words, nd the rm's incentive to adopt the new technology.) i) The pollution standard remains the same as you computed in part b) (i.e. it remains at E*), (3 marks) ii) The government adjusts the pollution standard such that MD = MACZ. (5 marks) (1) Now consider the case where the government introduces a strict liability law rather than a pollution standard. You can assume there were no pollution policies before the government became involved and that the rm's MAC is given by MACI = 10, 000 EE . In this case, derive the following: (10 marks) i) The initial level of emissions. ii) The level of emissions that occurs with the strict liability law. iii) Show graphically and provide dollar values for the private gains or losses to the polluting rm, as well as to victims of the pollution, under this strict liability law. iv) Show graphically and provide dollar values for the social net gain or loss from the strict liability law