Table 16.1
-Producers X and Y dump waste into a local river.Table 16.1 shows the production costs each firm faces at different levels of waste.For Producer X,the marginal cost of reducing waste from 500 gallons to 400 gallons is:
A)$1,400
B)$300
C)$200
D)$240

Question

Table 16.1
-Producers X and Y dump waste into a local river.Table 16.1 shows the production costs each firm faces at different levels of waste.For Producer X,the marginal cost of reducing waste from 500 gallons to 400 gallons is:
A)$1,400 
B)$300 
C)$200 
D)$240

Quizplus · Accepted Answer

From 500 gallons to 400 gallons, Producer X incurs a cost of $200. This means that it is cheaper for Producer X to reduce waste from 500 to 400 gallons than it is to reduce waste from 400 to 300 gallons, which would incur a cost of $300. Therefore, the best choice for Producer X is to reduce waste from 500 to 400 gallons.

Table 16.1 -Producers X and Y Dump Waste into a Local River.Table