Question 9: Suppose there are two polluters in the same region. Each generates 40 units of pollution per year so that there are 80 units per year in total. After thorough investigation, the government decides that total pollution from these polluters should not exceed 4|] units per year and so they set market abatement (AMKTI at 40 units of pollution per year. Each polluter's marginal abatement costs {MAC} and total abatement costs {TAG} are given below. Using this information, answer the following questions. Poiluter 1: mm = 5A1 and mm = 2.51M): Polluter 2: MACE = 151112 and TACZ = F.5{Alj2 Part [a] Without intervention, how many units of pollution will Polluter 1 choose to abate? How many units will Poiluter 2 choose to abate? Part lb} Suppose the government imposes a uniform pollution abatement standard in order to achieve the abatement goal of AMKT. Under this method, what is Polluter 1's abatement level? What is Polluter 2's abatement level? Part [cl What is the total abatement cost [TACMKTlof the unitotm pollution abatement policy in Part is}, where TAEMKT = mm + TACE? Part id} Suppose that instead of a uniform pollution abatement standard, the government decides to impose a flat rate (constant) per~unit emissions tax. What emissions tax will induce an overail reduction of 4D units of pollution? Under this tax, how many units of pollution will Polluter 1 choose to abate? How many units of pollution will Polluter 2 choose to abate? Part to] What is the total market abatement cost [TACMKT] otthe emissions tax you found in Part id}? Part if} Now suppose that instead of an emissions tax, the government decides to impose a flat rate perunit emissions reduction subsidy. What emissions reduction subsidy 1wilt induce an overall reduction of 40 units of pollution? Under this subsidy, how many units of pollution will Polluter 1 choose to abate? How many units of pollution will Folluter 2 choose to abate? What is the totai market abatement cost [TACMKTJ of this policy