2. The marginal cost function for reducing emissions of a uniformly mixed fund pollutant is given by 0.7E for firm 1 and 0.3E for firm 2. A total of 200 units of emission (E) is supposed to be reduced. Provide an estimate of:
a) The cost per firm (and the total), if each firm has to reduce emissions by the same amount.
b) The total cost if firms operate under a cap-and-trade system.
c) Would an efficient emission charge achieve the same level of abatement? If so, what charge would it be, if not, why not?