1) There are three polluting sources with the following functions: MAC₁ = 100 - 4E₁, MAC₂ = 80 - 2E₂ and MAC₃ = 60 - 0.5E₃

a) With no regulations in place, what will be the total amount of pollution emitted by all 3 sources?

b) Suppose that, at the socially-efficient emissions level, MAC_T = $10. What is the socially-efficient level of emissions? (hint: using the equimarginal rule, determine how much each source will emit and sum these)

c) Suppose that, at the socially-efficient emissions level, MAC_T = $10. What is the total abatement cost? Don't forget the dollar sign. (hint: you will first need to determine how much each source emits if unregulated and how much they emit when their MAC = $10; then sum the abatement costs for all sources)