6. Suppose two firms, 1 and 2, have marginal abatement cost functions given by 10002e1 MAC2...

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6. Suppose two firms, 1 and 2, have marginal abatement cost functions given by 10002e1 MAC2 = 1200 - 2e2 MAC1 = the marginal damage function is And suppose where Ee + e2. MD = 3E a) Find the efficient amount of total emissions and the efficient amounts for each of the two firms. (5) b) Draw a diagram, with clear and accurate labels, to illustrate your solution. (2) 6. Suppose two firms, 1 and 2, have marginal abatement cost functions given by 10002e1 MAC2 = 1200 - 2e2 MAC1 = the marginal damage function is And suppose where Ee + e2. MD = 3E a) Find the efficient amount of total emissions and the efficient amounts for each of the two firms. (5) b) Draw a diagram, with clear and accurate labels, to illustrate your solution. (2)