Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.
Suppose the government requires each firm to reduce pollution to 2 tons of smoke per day, so that total daily smoke emission is 6 tons. The total cost to society of this policy will be ________ per day.
A)$59
B)$42
C)$230
D)$135

Question

Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.   
Suppose the government requires each firm to reduce pollution to 2 tons of smoke per day, so that total daily smoke emission is 6 tons. The total cost to society of this policy will be ________ per day.
A)$59 
B)$42 
C)$230 
D)$135

Quizplus · Accepted Answer

Going from 4 to 2 tons of smoke would cost Firm X $30 per day, Firm Y $45 per day, and Firm Z $60 per day, for a total of $135 per day.

Suppose There Are Three Power-Generating Plants, Each of Which Has