The following table shows four firms, the amount each pollutes, the marginal cost for each firm to clean up pollution, and the total cost to each firm of eliminating all pollution.FirmTotal Discharge (in tons)Marginal Cost of Cleanup(per ton)Total Cost of CleanupA60$5.00$300B70$8.00$560C80$7.50$600D90$4.00$360The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes. If the government establishes an effluent fee of $7.00 per ton, how much would the firms spend on reducing pollution?
A. $2,100
B. $660
C. $1,820
D. $1,710
Answer: B
Economics
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As the price of good X rises, the demand for good Y falls. Therefore, goods X and Y are
A) substitutes. B) normal goods. C) complements. D) inferior goods. E) none of the above
Economics
Long-run equilibrium will occur at the price level at which
A. the long-run aggregate demand and short-run aggregate supply curves intersect. B. the aggregate demand and long-run aggregate supply curves intersect. C. the aggregate demand and short-run aggregate supply curves intersect. D. the short-run aggregate supply and long-run aggregate supply curves intersect.
Economics