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Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 12 - 3E_1 MAC 2 = 6 - 2E_2. In the absence of government intervention, total emissions for the two firms (E_1 + E2) is Answer:Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 11 - 2E_1 MAC_2 = 12 - E_2, and assume marginal external damages (MED) from the aggregate emissions of both firms (E_Agg = E_1 + E_2) is: MED = E_Agg. Total abatement costs (TAC) for both firms at the socially efficient level of aggregate emissions (E*_Agg) is