Table 10-6
The following table shows the total costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $46, and for Firm A to eliminate two units of pollution, it would cost a total of $103.

-Refer to Table 10-6.Suppose there is presently no pollution fee,and the government wishes to eliminate exactly 11 units of pollution.Which of the following fees per unit of pollution would achieve that goal?
A) $60
B) $70
C) $76
D) $88

Question

Table 10-6
The following table shows the total costs for each of four firms (A, B, C, and D) to eliminate units of pollution from their production processes. For example, for Firm A to eliminate one unit of pollution, it would cost $46, and for Firm A to eliminate two units of pollution, it would cost a total of $103.
 
-Refer to Table 10-6.Suppose there is presently no pollution fee,and the government wishes to eliminate exactly 11 units of pollution.Which of the following fees per unit of pollution would achieve that goal?
A) $60 
B) $70 
C) $76 
D) $88

Quizplus · Accepted Answer

To eliminate exactly 11 units of pollution, we need to add up the costs for each firm to eliminate 11 units. 
For Firm A, it would cost $46 x 11 = $506. 
For Firm B, it would cost $21 x 11 = $231. 
For Firm C, it would cost $4 x 11 = $44. 
For Firm D, it would cost $11 x 11 = $121. 
Therefore, the total cost to eliminate 11 units of pollution is $506 + $231 + $44 + $121 = $902. 
To achieve this goal, the fee per unit of pollution should be set at $902/11 = $76. Therefore, the correct answer is C.

Table 10-6 the Following Table Shows the Total Costs for Each of Each