The naval vessels in Naval Base San Diego (NBSD) and aircrafts onboard Marine Corps Air Station Miramar (MCAS) cause air pollution. The State of California Assembly is proposing a bill that will regulate and limit particulate matter (PM) emissions. Each base or station emits 100 units of PM. NBSD impacts 7,000,000 people. MCAS impacts 1,000,000. The marginal damage is increasing in pollution where 0.000001e for each individual; where "e" is the pollution amount in tons. The marginal abatement costs for PM are MCa = qa for MCAS Miramar; and MCb=3qb for NBSD. qa and qb are the abatement quantities in tons of emissions. a) If it's a command and control (C&C) regulation, what are the total health benefits? b) Net benefits from 50% emission reduction under this (C&C)? Under cap and trade (C&T), how much each company will abate optimally? Permit price under C&T? Total abatement costs under C&T? Health benefits under C&T? Which one has higher net benefits, under C&C or C&T? --Explaining the process really helps a lot in understanding better what has been taught in the classroom and written in books. I really want to learn how these problems are analyzed and the "dots are connected". I really appreciate all the efforts. Thank you.