Question

There are two firms that emit pollutant S02. Assume the pollution abatement technology of the two firms canbe represented by MAC functions: MACA = 240 - 6E and MACB = 160 - 48. Currently there is no pollutioncontrol. Now the local government wants the total pollution to be reduced by 50%. Suppose the governmentknows the pollution abatement technology of the two firms. It decides to impose a tax of St/ton on pollutantemission.How should the government set the tax rate t?Given this tax, how many tons of pollutant will Firm A emit? How many tons of pollutant will Firm B emit?What is the total tax revenue of the government? Draw a graph to illustrate your answer.​

Answer 1

Answer:

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Explanation:

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