Table 28.1 $\begin{array}{|c|r|r|}
\hline \begin{array}{c}
\text { Reduction in Emissions } \
\text { (in tons) }
\end{array} & \begin{array}{c}
\text { MC to Reduce Emissions by } \
\text { SteelPlant }
\end{array} & \begin{array}{c}
\text { MC to Reduce Emissions by } \
\text { Paper Plant }
\end{array} \
\hline 1 & \$ 400 & \$ 200 \
\hline 2 & 500 & 280 \
\hline 3 & 600 & 320 \
\hline
\end{array}$ Refer to Table 28.1.Suppose the government commands each firm to reduce its emissions by one ton each.What is the total cost?

Question

Table 28.1 $\begin{array}{|c|r|r|}
\hline  \begin{array}{c}
\text { Reduction in Emissions } \
\text { (in tons) }
\end{array} & \begin{array}{c}
\text { MC to Reduce Emissions by } \
\text { SteelPlant }
\end{array} & \begin{array}{c}
\text { MC to Reduce Emissions by } \
\text { Paper Plant }
\end{array} \
\hline 1 & \$ 400 & \$ 200 \
\hline 2 & 500 & 280 \
\hline 3 & 600 & 320 \
\hline
\end{array}$ Refer to Table 28.1.Suppose the government commands each firm to reduce its emissions by one ton each.What is the total cost?

Quizplus · Accepted Answer

The total cost is the sum of the marginal costs for each firm to reduce emissions by one ton: $400 (Steel Plant) + $200 (Paper Plant) = $600.

Table 281 Refer to Table 28