Two producers in a market producing widgets have different marginal abatement costs MAC1=2A1 MAC2=A2 Where A is units of abatement in tons per year. Without abatement, firm 1 is producing 6 unit of emissions, while firm 2 is producing 12 units of emissions. (A1 E1=6; A2 E2=12). The marginal cost of emission is SMC=E, where E=E1 E2 (a) What is the aggregate MAC function for the Widget market? (b) Draw and label a graph of the individual MAC curves, aggregate curve and SMC curve (the x-axis can be either abatement or emission). (c) What is the optimal level of emission for the whole market? (d) What would be the appropriate Pigovian tax rate for the government to impose in order to reach the efficient level of emission? (e) What are the individual firm levels of emissions with regard to the tax? What are the total cost of emission abatement for both firms