$$\begin{array}{l}
\begin{array} { c c c }
\hline \text { Wasle water } & \text { Firm A } & \text { Firm B } \
\hline 2,000 & \$ 100 & \$ 120 \
1,000 & \$ 103 & \$ 135 \
0 & \$ 115 & \$ 155 \
\hline
\end{array}\
\text { Table } 9.5
\end{array}$$

-Given the data in Table 9.5, if firm A were to reduce pollution from 1,000 gallons of wastewater per day to 0 gallons per day, production costs:
A)would increase by $12.
B)would decrease by $12.
C)would not change.
D)cannot be calculated from the information above.

Question

$$\begin{array}{l}
\begin{array} { c c c } 
\hline \text { Wasle water } & \text { Firm A } & \text { Firm B } \
\hline 2,000 & \$ 100 & \$ 120 \
1,000 & \$ 103 & \$ 135 \
0 & \$ 115 & \$ 155 \
\hline
\end{array}\
\text { Table } 9.5
\end{array}$$

-Given the data in Table 9.5, if firm A were to reduce pollution from 1,000 gallons of wastewater per day to 0 gallons per day, production costs:
A)would increase by $12.
B)would decrease by $12.
C)would not change.
D)cannot be calculated from the information above.

Quizplus · Accepted Answer

Reducing pollution from 1,000 to 0 gallons increases Firm A's costs from $103 to $115, an increase of $12.

-Given the Data in Table 9