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A toy factory Avengers can generate 50 (CO2) emissions without any regulation. The marginal control cost for Avengers, associated with emission...

A toy factory Avengers can generate 50 (CO2) emissions without any regulation. The marginal control cost for Avengers, associated with emission reduction, is known MC=10+Q where Q is reduced units. Suppose that the regulator impose an emission standard on Avengers: According to the emission standard, the factory is allowed to emit 20 units. (a) How many units of reduction will Avengers clean up under the emission standard? What is the total control cost for Avengers in this command-and-control regulation? (Hint: Read questions carefully) (b) The level of reduction in the emission standard could be accomplished through an emission charge (quantity tax or penalty fee on emission). What emission charge per emission unit would generate the target amount of reduction? How much revenue the regulator will collect as emission charges?

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