Suppose the government is considering a policy to reduce the level of pollution created by two firms. Firms A and B each produce 100 units of pollution. Firm A's marginal cost of pollution reduction =2Q , where Q refers to the number of units of pollution reduction. Firm B 's marginal cost of pollution reduction =Q . The marginal benefit to society of reducing pollution by one unit =40 . a. What is the socially efficient amount of pollution reduction? b. If the government decides to use a tax on pollution to incentivize the firms to decrease the level of pollution, what size tax will lead to the socially efficient level of pollution? By how many units will each firm reduce their level of pollution? What is the total cost of pollution reduction? c. If the government decides to mandate pollution reduction by requiring each firm to reduce pollution by the same amount (no trading of pollution rights), by how many units will each firm need to reduce pollution to get to the socially efficient level? In this scenario, what is the total cost of pollution reduction