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Please answer all parts in detail. Thank you! Question 3. Predicted versus socially efficient emissions. Consider a polluting firm with a marginal abatement cost function

Please answer all parts in detail. Thank you!

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Question 3. Predicted versus socially efficient emissions. Consider a polluting firm with a marginal abatement cost function as given in the figure below. Suppose you know that the marginal damage function describing the external costs imposed by the firm's emissions is as depicted below. Assume that the firm makes choice according to the rational model. S Marginal Abatement Marginal Damage Cost d > Emissions 5 10 Fill in the empty cells in the table below with the appropriate letter(s) or number. Total Total Total loss Emissions damage abatement cost (TL) = TD + leve (TD) (TAC) TAC Firm is unregulated Firm achieves socially efficient emissions Net benefit (reduction in TL) with move from unregulated to socially efficient emissions level-->

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