Two firms,A and B,each currently dump 50 tons of chemicals into the local river.The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river.The government will sell 40 pollution permits for $75 each.It costs Firm A $100 for each ton of pollution that it eliminates before it reaches the river,and it costs Firm B $50 for each ton of pollution that it eliminates before it reaches the river.It is likely that between the cost of permits and the cost of additional pollution abatement,
A)Firm B will spend $3,500.
B)Firm A will spend $4,000.
C)Firm A will spend $4,500.
D)Firm B will spend $3,000.

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The Answer of Two firms,A and B,each currently dump 50 tons of chemicals into the local river.The government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river.The government will sell 40 pollution permits for $75 each.It costs Firm A $100 for each ton of pollution that it eliminates before it reaches the river,and it costs Firm B $50 for each ton of pollution that it eliminates before it reaches the river.It is likely that between the cost of permits and the cost of additional pollution abatement,
A)Firm B will spend $3,500.
B)Firm A will spend $4,000.
C)Firm A will spend $4,500.
D)Firm B will spend $3,000.

Two Firms,A and B,each Currently Dump 50 Tons of Chemicals