Problem
If each firm is permitted to emit half of the efficient level of pollution, illustrate your answer in a diagram which contains the MAA and MAB curves.
(a) With each firm producing this amount of pollution, how much would it cost each one to reduce pollution by one unit?
(b) If these two firms can freely trade the right to pollute, how many units will they (profitably) trade?
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.