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Please show me how to solve the problem and draw the graphs Two power plants are currently emitting 8,000 tons of pollution each (for a

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Please show me how to solve the problem and draw the graphs

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Two power plants are currently emitting 8,000 tons of pollution each (for a total of 16,000 tons} in City A. Marginal pollution reduction costs for Plant 1 are given by MCR1 = 0.02 01 and for Plant 2 by MCRQ = 0.03 02, where 0 represents the number of tons of pollution reduction. [3] Finally, suppose a tractable permit system is instituted in which permits for emissions of 6,000 tons of pollution are freely issued, that is, 3,000 permits to each plant. a. What are the pollution reductions oosts to each plant without trading? Hint: Draw a graph similar to Figure 8.6 on page 186, showing 10,000 tons of total pollution reduction. b. with trading, explain which plant will sell permits and how many permits the rm will sell. Hint: Use the graph you drew in Question is]. e. Assuming all permits sell for the same price, calculate each plant's net oosts after trading, considering their pollution reduction costs and the oosts llior revenue) from trading permits. d. Calculate the total pollution control {or reduction] costs for the two plants together. Pollution Reduction _ _ . Costspertlnit MGR;

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