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marginal abatement cost curves for polluters 1 and 2 : MAC1=10-e1 and MAC2=8-e1. * How much...

marginal abatement cost curves for polluters 1 and 2 : MAC1=10-e1 and MAC2=8-e1.

* How much does polluter 1 and polluter 2 pollute without government intervention?

* This level of pollution should be reduced by 50%. What are the marginal and total abatement costs of polluters 1 and 2 if a command and control policy is applied?

* What is the optimal outcome, or which allocation of emissions minimize the abatement costs? Please calculate the total abatement costs for the economy.  

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