1. (70 points) The table below shows the discrete form marginal abatement costs of Sulphur Dioxide (SO2) for two firms (Khaadi and Nishat Linen). Each firm is currently emitting 10 tons of SO2: Marginal Abatement Costs (Rs/ton) Emissions (Tons) Khaadi Nishat 10 9 8 7 6 5 4 3 2 1 0 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 18,000 28,000 48,000 0 4,000 8,000 14,000 20,000 30,000 42,000 56,000 76,000 100,000 180,000 O a. (5 points) Calculate each firm's total abatement cost for an equiproportionate 50 percent reduction in the current level of SO2 emissions. Suppose the regulatory authority creates permits such that each permit allows 1 ton of emissions. The regulator allows the firms to trade the permits with each other after. b. (5 points) For a 50 percent reduction in the current level of SO2 emissions, how many permits should the regulatory authority distribute