Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.
Suppose the firms are both currently using process A. If the government requires each firm to reduce pollution by 20 percent, then the firms will adopt process ________, and a total of ________ tons of smoke will be emitted each day.
A)A; 18
B)B; 16
C)C; 12
D)D; 8

Question

Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.   
Suppose the firms are both currently using process A. If the government requires each firm to reduce pollution by 20 percent, then the firms will adopt process ________, and a total of ________ tons of smoke will be emitted each day.
A)A; 18 
B)B; 16 
C)C; 12 
D)D; 8

Quizplus · Accepted Answer

Each firm can reduce its emissions from 10 tons to 8 tons (20 percent)by adopting process B.

Two Firms, Acme and FirmCo, Have Access to Five Production