There are two factories (A and B) in a given town. Information on the level of pollution released by each factory initially is provided in the table. Also provided is the cost of cleaning up (abatement) for each factory Factory Initial level of pollution Cost of reducing pollution released by factory (in by one unit (one ton) tons) 45 1$ Factory A 10 tons Factory B12 tons The total amount of pollution at the start from both factories is 22 tons. The government wants to reduce the total pollution to 16 tons. The government provides each factory 8 tradeable pollution permits. a): If the factories do not trade pollution permits, how much will be the total cost of reducing pollution from 22 tons to 16 tons? [2 marks] b): Suppose the factories decide to trade pollution permits at a price of 6$ per permit and A selis 4 permits to B. What would be the total cost of reducing pollution from 22 tons to 16 tons? Briefly explain [2 marks] There are two factories (A and B) in a given town. Information on the level of pollution released by ench factory initially is provided in the table. Also provided is the cost of cleaning up (abatement for each factory Factory Initial level of pollution Cost of reducing pollution released by factory (in by one unit (one ton) tons) Factory Alto tons 10$ Factory B12 tons 78 The total amount of pollution at the start from both factories is 22 tons. The government wants to reduce the total pollution to 16 tors. The government provides each factory 8 tradeable pollution permits. a): If the factories do not trade pollution permits, how much will be the total cost of reducing pollution from 22 tons to 16 tons? [2 marks] b): Suppose the factories decide to trade pollution permits at a price of 6$ per permit and A sells 4 permits to B. What would be the total cost of reducing pollution from 22 tons to 16 tons? Briefly explain (2 marks] Paragraph MacBook Pro