Currently emitting some undesirable pollutant into the air

Reference no: EM13692486

Suppose there are two factories that are currently emitting some undesirable pollutant into the air. Factory one has marginal abatement cost of MAC1 = 500 - 5e1 and factory two has marginal abatement cost of MAC2 = 1500 - 15e2, where e represents the level of emissions for each firm. Suppose the government wants to reduce emissions so that the total emissions equal 120, or e1 + e2 = 120. Enter whole numbers in each blank.

To minimize the total cost of achieving this reduction in emissions, firm 1 should have emissions equal _______ to and firm 2 should have emissions equal to ______ . At these levels of emissions, the marginal abatement cost for firm 1 is $______ and the marginal abatement cost for firm 2 is $_____. The total abatement cost for firm 1 is $________ and the total abatement cost for firm 2 is $_______.

Reference no: EM13692486

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