In the island nation of Belair there are two fossil fuel power plants that provide all the nation's electricity. One plant is owned by Aircorp and the other is owned by Belcorp. The Aircorp plant is older and operates with less efficient equipment than the Belcorp plant. Both plants produce pollution as a by-product of their production of electricity. (That is, they produce pollution at zero cost.)

a.If there is no government regulation of pollution, how many units of pollution will Aircorp emit? How many units of pollution will Belcorp emit? Explain your answers.

b.Suppose the government of Belair decides that it wants to reduce total pollution emissions to 100 units by prohibiting any company from emitting more than 50 units of pollution. How many units of pollution will each firm now emit? What will be the Marginal Benefit of Pollution for each firm at their level of emissions? (Note: you are being asked to provide 4 numbers here: Aircorp emissions; Aircorp Marginal Benefit of Pollution; Belcorp emissions; Belcorp Marginal Benefit of Pollution)