Problem
a. Under a strict command-and-control framework, suppose abatement standards are set equally across polluters. Assume the total abatement target is 30 units. Show the cost implications using three graphs, each of a different polluter with a uniqueMACcurve drawn to depict a low-cost abater, a moderate-cost abater, and a high-cost abater. On each graph, identify the abatement level corresponding to a uniform standards approach, and show the level of MAC at that point and the area corresponding to TAC.
b. Now, refer directly to your model, and summarize what would happen qualitatively to the abatement levels of each firm if the equimarginal principle of optimality were used. Explain intuitively why this method would be cost-effective.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.