$$\begin{array}{l}
\begin{array} { c c c }
\hline \text { Waste water } & \text { Firm A } & \text { Firm B } \
\hline 200 & \$ 125 & \$ 200 \
100 & \$ 135 & \$ 212 \
0 & \$ 142 & \$ 240 \
\hline
\end{array}\
\text { Table } \mathbf { 9 . 6 }
\end{array}$$
-Given the data in Table 9.6, if firm A were to reduce pollution from 100 gallons of wastewater per day to 0 gallons per day, production costs:
A)would increase by $7.
B)would decrease by $7.
C)would not change.
D)cannot be calculated from the information above.

Question

$$\begin{array}{l}
\begin{array} { c c c } 
\hline \text { Waste water } & \text { Firm A } & \text { Firm B } \
\hline 200 & \$ 125 & \$ 200 \
100 & \$ 135 & \$ 212 \
0 & \$ 142 & \$ 240 \
\hline
\end{array}\
\text { Table } \mathbf { 9 . 6 }
\end{array}$$
-Given the data in Table 9.6, if firm A were to reduce pollution from 100 gallons of wastewater per day to 0 gallons per day, production costs:
A)would increase by $7.
B)would decrease by $7.
C)would not change.
D)cannot be calculated from the information above.

Quizplus · Accepted Answer

The marginal cost of reducing pollution from 100 gallons of wastewater per day to 0 gallons per day is $142 - $135 = $7.

-Given the Data in Table 9