The three firms below have five choices for pollution control: no controls or four different technologies,W,X,Y and Z.The amount of pollution emitted and the cost of the technologies are shown in the table.
-Refer to the information above.Suppose that the government requires the three firms to reduce pollution by 25% from the no-control level.Pollution reduction process __________ will be chosen and will result in a total cost of __________.
A) W;$2700
B) Y;$4200
C) Z;$4800
D) X;$3500
E) W;$3400

Question

The three firms below have five choices for pollution control: no controls or four different technologies,W,X,Y and Z.The amount of pollution emitted and the cost of the technologies are shown in the table. 
-Refer to the information above.Suppose that the government requires the three firms to reduce pollution by 25% from the no-control level.Pollution reduction process __________ will be chosen and will result in a total cost of __________.
A) W;$2700 
B) Y;$4200 
C) Z;$4800 
D) X;$3500 
E) W;$3400

Quizplus · Accepted Answer

To achieve a 25% reduction in pollution, all three firms would need to implement technology X. Firms A, B, and C would incur costs of $800, $1500, and $1200, respectively, for a total cost of $3500. This is the most cost-effective option as the total cost is lower than if all firms implemented technology Y or Z, and technology X is more effective than technology W.

The Three Firms Below Have Five Choices for Pollution Control