Still observing the John Amos and Mitchell coal fired power plants, suppose regulators opt instead for a tax (also known as a charge or fee) to influence abatement of SO 2. The fee is $5000/ton of SO 2 emissions. Recall, each firm will emit 1500 tons of SO 2 unregulated. Using the MC of abatement functions provided below, where Q is tons of SO 2 and costs are in dollars, answer the following questions:

a. How much pollution will each plant abate?

b. How much pollution will each plant emit?

c. How much will the John Amos plant pay in taxes?

d. How much will the Mitchell plant pay in taxes?

e. If the pollution emissions need to be reduced by 50% to achieve environmental quality objectives, does this charge achieve the desired outcome? Explain. If not, should the fee be higher or lower?