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There are two electric utilities in the United States; together, the utilities emit a total of 1000 tons of mercury annually. The country wants to reduce mercury emissions by 50%, so it has decided to implement an acid-rain control program. Source A is an old, established company with ancient equipment. Source B is a newer company with better machinery. Their MAC curves (as functions of their emission levels) are: MACA(EA)=4000.5EAMACB(EB)=3000.5EB Use a two-sided graph approach to find the tax that would result in desired emissions goal of 50% reduction at the minimum total cost. Calculate the level of this tax..

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There are two electric utilities in the United States; together, the utilities emit a total of 1000 tons of mercury annually. The country wants to reduce mercury emissions by 50%, so it has decided to implement an acid-rain control program. Source A is an old, established company with ancient equipment. Source B is a newer company with better machinery. Their MAC curves (as functions of their emission levels) are: MACA(EA)=4000.5EAMACB(EB)=3000.5EB Use a two-sided graph approach to find the tax that would result in desired emissions goal of 50% reduction at the minimum total cost. Calculate the level of this tax..

- 1. There are two electric utilities in the United States; together, the utilities emit a total of 1000 tons of mercury annually. The country wants to reduce mercury emissions by 50%, so it has decided to implement an acid-rain control program. Source A is an old, established company with ancient equipment. Source B is a newer company with better machinery. Their MAC curves (as functions of their emission levels) are: MACA(EA)=4000.5EAMACB(EB)=3000.5EB Use a two-sided graph approach to find the tax that would result in desired emissions goal of 50% reduction at the minimum total cost. Calculate the level of this tax.