Question: how do you calculate total abatement cost?
Answer: Calculate the total abatement costs for each firm. E H * = 200 – (240)/2 = 80 E L * = 100 – (240)/4 = 40 Total abatement cost is the total area under the MAC up to the level of abatement which is the area of the triangle = (1/2)*MAC*(E 0 - E*).