ANSWER ALL QUESTIONS IN LONG PROBLEM! Long Problem $1$ : Policy makers are concerned about the negative effects of Sulfur Dioxide $($S$*$O$\_\{2\})$ emissions from electric power plants $.$ Regulators are considering several policy options to the tons of S$*$O$\_\{2\}$ emissions per year Suppose there are two power plants in that would be subject to a possible new regulation : Firm A and Firm Their marginal abatement costs are given $($ respectively $)$ by: MA$*$C$\_\{$A$\}=200-$ E$\_\{$A$\}$ and MAC $=180-(1/2)$E; mA$*$C$\_\{$g$\}180200$ a $)[4$ points$]$ Some people support the idea of establishing a Uniform Standard for restricting S$*$O$\_\{2\}$ emissions from electric power plants. If this uniform standard is set to $100$ tons per year, how much S$*$O$\_\{2\}$ would each firm in Illinois be permitted to emit Firm A Firm B $200-100$ b$)4$ points$]$ Which firm $($Firm A or Firm B$)$ would have a larger cost of abatement? $180-(\mathrm{.}5)(100)$ Firm B B c$)$ Consider Firm A with MA$*$C$\_\{$A$\}\backslash$approx $200-$ E$\_\{$A$\}$ With a uniform standard of $100$ tons, Firm A might make an investment in a new technology to lower the cost of reducing S$*$O$\_\{2\}$ emissions. This would lead to new marginal abatement curve of: MAC Anew $=100-(1/2)$E A $4$ points $]$ Calculate the most that Firm A would be willing to spend on the new technology given the uniform standard? Firm would spend at most $50$