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 decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?
A)$21 per ton
B)$26 per ton
C)$36 per ton
D)$41 per ton

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 decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?
A)$21 per ton 
B)$26 per ton 
C)$36 per ton 
D)$41 per ton

Quizplus · Accepted Answer

The lowest tax in whole dollars that would reduce pollution to 6 tons per day would be $26. Under this tax, Firm X would emit 1 ton, Firm Y would emit 2 tons and Firm Z would emit 3 tons.

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