Suppose there are two polluting industries located in a city. In the business-as-usual outcome, industry #1 emits 20 units of pollution and industry #2 emits 20 units of pollution. If industry #1 reduces units of pollution from their business-as-usual level, they incur the following total abatement costs: TACl (m1) = %(m1)2, forO g 3:1 3 20 1114020172) = %(.'B2)2, fOTO S 3.32 S 20 What is the market (aggregate) marginal abatement cost function? 0 MAC(X)=(3/2)X O MAC(X)=(2/3)X O MAC(X)=(1/3)X O MAC(X)=3X Now, assume that the total social benefit from reducing X units of total pollution, where X = x1 + 2 , is given by: TSB = 45 . X - Z X2 What is the socially optimal level of total abatement that the firms should combine to provide?If the optimal quantity of abatement is achieved through a tax, what will the tax be