Exhibit 30-3 Costs of Eliminating:Firm A Firm B Firm C 1st ton of pollution$ 30 $ 50 $ 600 2nd ton of pollution$ 70 $ 90 $ 700 3rd ton of pollution$125 $150 $ 900 4th ton of pollution$200 $250 $1,300 Refer to Exhibit 30-3. Suppose that Firms A, B, and C are the only polluters in the state and that each emits 4 tons of pollution into the atmosphere. To cut the level of pollution in half, the government mandates system whereby each firm must reduce its pollution level by one-half. The total cost of complying with the mandate is
A. $433.
B. $1,540.
C. $2,750.
D. $8,570.
E. $11,650.
Answer: B
Economics
You might also like to view...
BAE, a British defense company, has the contract to produce Tornado aircraft for the Royal Air Force. BAE is producing the aircraft at the lowest possible cost. If the RAF orders one more Tornado, there will be
A) a decrease in opportunity costs as average costs decrease. B) a misallocation of resources. C) an increase in opportunity cost for Tornados. D) an outward shift in the PPF.
Economics
How has income inequality changed in recent years? What factors account for the changes?
What will be an ideal response?
Economics