Scenario 3 Lexie is an EPA economist who has been tasked wit…

Scenario 3 Lexie is an EPA economist who has been tasked with setting an emissions cap on sulfur-dioxide (SO2) emissions in a particular subset of the coal-fired energy sector. Through some research, Lexie has figured out that the marginal damages of emissions are MD = 55 + 5E while the marginal abatement costs are MAC = 30 – 3E. (Note: E is the quantity of SO2 emissions.)

Scenario 4 Gill wants to beautify his property. One way he w…

Scenario 4 Gill wants to beautify his property. One way he will accomplish this is by increasing the clarity of his pond. Gill measures clarity using secchi depth (SD), where larger SD means clearer water. Gill wants to increase SD by 7 meters using some combination of the following 3 tools:Increase pond aeration (a)Add aquatic plants that starve algae (p)Dredge the pond (d) Suppose the marginal cost curves for the above 3 tools can be represented as