problem 5.

Problem 5. (30 points) (Socially optimal emissions.) The total damage from emissions is represented by the function D=292. The cost of abatement function is AC=a2, where a- E e is abatement, E 18 initial, unabated level of emissions, and e is the nal level of emissions. E is equal to 100 tons. A. What is the socially optimal level of pollution? B. What are the total abatement costs and the total damages experienced by the public at this level of pollution? C. The government wants to achieve the social optimum by imposing a tax on emissions. If the tax is $25 per ton, does it achieve the social optimum