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 total cost to society of this policy will be ________ per day.
A)$300
B)$950
C)$1,550
D)$2,350

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 total cost to society of this policy will be ________ per day.
A)$300 
B)$950 
C)$1,550 
D)$2,350

Quizplus · Accepted Answer

Each firm can reduce its emissions from 10 tons to 8 tons (20 percent)by adopting process B. Moving from process A to process B will cost Acme $50 per day and FirmCo $250 per day, for a total of $300 per day.

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