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Question \"Consider a competitive market for electricity production in which some rms are polluters. Firm A (coal burning): CHAPlxzl and 1 the environmental cost to society is E[XA] = h. Firm B (wind power): C(xB]:i, 20).:B and the environmental cost to society is Elxal=0- i} hsume the market operates without any recognition of environmental costs. Find the supply function of each price-taking rm. Assume the market demand for the commodity is given by ii) \"Find the competitive market equilibrium price and quantity using the rm supply functions in i) and the market demand above. iii} a How much do each of the rms supply? iv} aSuppose a planner uses the representative consumer's utility function, to nd the socially optimal allocation of resources to the two rms. Choose (XA,X3, y) to solve max U [x,y)=(10000]1n [x)+y Subject to X=XA+XB; xA20Ax320 and C(xAl+C[x3]+E[xAl+y=50,000 What will be the aggregate production level, and how much will each rm supply? Page 1 of 2 v) Use a pair of sketches of the market and planner allocations (using the market mand/marginal benet curve and cost curves of the rms} to compare the net benet to society from the outcomes in ii) and iv}