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Hello, I would like some help to solve this question please. Thank you. 2. (40 pts) Two factories are located close to Saint Laurent. Their

Hello, I would like some help to solve this question please. Thank you.

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2. (40 pts) Two factories are located close to Saint Laurent. Their emissions cause environ- mental damages. The cost of abatement for factory A is given by MACA = 200-0.1EA and for factory B is given by MACB = 200 - 0.4EB. The damages caused in the river are given by MD - 0.12E. (a) Find how many units of emissions the two factories will emit if they are left unregulated. (8 pts) (b) Derive algebraically and graphically the aggregate marginal abatement cost curve. (10 pts) H (c) Find the socially efficient level of emissions in the river and the socially efficient level of abatement. Show the equilibrium on your graph. (8 pts) (d) Calculate the total social cost at the socially efficient level of emissions. Show the corresponding area on your graph. (8 pts) (e) Find the marginal abatement cost of the 240th unit of abatement for firm B. (6 pts)

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