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Question 1 (5 points) There are two firms in a community that pollute the environment. They emit 12 units of pollution in total (Firm A

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Question 1 (5 points) There are two firms in a community that pollute the environment. They emit 12 units of pollution in total (Firm A emits 8, firm B emits 4) in the absence of any government policy. The marginal cost of pollution abatement for each firm is given in the table below. Unit abated Firm A 1 Firm B 6 2 3 8 3 5 10 4 7 12 5 9 14 6 16 7 18 8 20 The government mandates that each firm must cut pollution by 75%. What is the social cost of pollution abatement in this case

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