gned type your name bere Date: 1) (25 points) Assume that your firm is emitting 4.500 tons of SO, currently. Assume that your Marginal Abatement Cost is MAC = 9,000 - 2E a. Draw this MAC curve in Excel, with MAC on the vertical axis and E on the horizontal axis. Note that "E" stands for emissions. Thus the curve is downward sloping. This means if there is less emissions, more has been controlled and thus the marginal cost of control is higher b. Assume that each firm is initially given 1,480 permits for free. The firm may buy more than 1.480 permits or may sell some of it 1,480 permits. The market permit price of $3,200. Show your work: i. Your firm's initial emissions: ii. Your firm's final emissions: ii. Tons your firm abates: iv. Permits you bought: v. Permits you sold: vi Revenue from permits sold: vii. Cost of permits bought: viii. Cost of abatement: ix. Total net cost to your firm: gned type your name bere Date: 1) (25 points) Assume that your firm is emitting 4.500 tons of SO, currently. Assume that your Marginal Abatement Cost is MAC = 9,000 - 2E a. Draw this MAC curve in Excel, with MAC on the vertical axis and E on the horizontal axis. Note that "E" stands for emissions. Thus the curve is downward sloping. This means if there is less emissions, more has been controlled and thus the marginal cost of control is higher b. Assume that each firm is initially given 1,480 permits for free. The firm may buy more than 1.480 permits or may sell some of it 1,480 permits. The market permit price of $3,200. Show your work: i. Your firm's initial emissions: ii. Your firm's final emissions: ii. Tons your firm abates: iv. Permits you bought: v. Permits you sold: vi Revenue from permits sold: vii. Cost of permits bought: viii. Cost of abatement: ix. Total net cost to your firm