Consider two firms with the following marginal abatement costs (MAC) as a function of emissions (E): MAC_1 = 22 - 2E_1 M

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Consider two firms with the following marginal abatement costs
(MAC) as a function of emissions (E):
MAC_1 = 22 - 2E_1
MAC_2 = 10 - E_2,
and assume marginal external damages (MED) from the aggregate
emissions of both firms (E_Agg = E_1 + E_2) is:
MED = .5E_Agg.
To achieve the socially efficient level of aggregate emissions
(E*_Agg), the government institutes a cap and trade policy and sets
the cap equal to the socially efficient level of emissions
(E*_Agg). If firm 2 is initially grandfathered 2 permits, it
will buy ____ more permits.
(Note: your answer can be positive or negative; if it is
positive, the firm is buying additional permits; if it is negative,
the firm sells permits. So, for example, an answer of -10 implies
that the firm sells 10 permits)
Answer: