Review the table above. Assume that one firm operates both sources and controls emissions. Currently, each source produces 12 tons/wk. of emissions. If the firm is required to reduce emissions by 3 tons from the current total of 24 tons/wk. (12 tons/wk. from each source), how should the 3 tons emissions reduction be distributed between the two sources?

Question

Quizplus · Accepted Answer

To reduce 3 tons of emissions, the firm can distribute it in different ways, but it should consider the cost-effectiveness of such reduction. In this case, Source B has a higher marginal abatement cost than Source A, therefore, it is more cost-effective to reduce 2 tons from Source A and 1 ton from Source B. This way, the firm can achieve the required reduction of 3 tons in a more efficient way. Therefore, the best choice is D.

Review the Table Above