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Please solve the question below The graph below shows the marginal cost of abatement curve, which shows the extra cost to the firm of cleaning

Please solve the question below

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The graph below shows the marginal cost of abatement curve, which shows the extra cost to the firm of cleaning up an additional unit of pollution. When a pollution charge of $5 per unit emitted is imposed, how many units of pollution will the 100 firm choose to clean up? 90 Number MC of Abatement Units 70 60 S 50 When a pollution tax of $20 per unit emitted is imposed, how many units of pollution will the 40 firm choose to clean up? 30 Number 20 Units 10 10 20 30 40 50 60 70 80 90 100 Quantity (units of pollution cleaned)Without any regulations, rm X and rm Y each produce 900 tons of a pollutant per year. Regulators have discovered that the optimal level of this pollutant is 1,000 tons of pollution each year. The accompanying graph provides the marginal benet curves of pollution for each rm. Suppose that regulators limit each rm's annual pollution to 500 tons each. By how much will each rm reduce its emissions? Firm Y: tons Noting that it is less expensive for rm X to reduce emissions, regulators decide to use a corrective tax instead of a strict environmental standard. Adjust the black line on the graph to show the optimal corrective tax to reduce total emissions to 1,000 tons per year. Under this tax, by how much will rm X reduce emissions (compared to the situation in which there are no regulations)? Marginal benet to polluters (55) 500 - 450 - Jr. D D (A! (II D D: O D 200 - .- (II D Firm Y Emissions Tax 0 100 200 300 400 500 600 700 800 900 1,000 Mctrictons

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