Table 9.6
-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

Table 9.6
-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 pollution reduction is $7 per gallon. Reducing pollution from 100 gallons per day to 0 gallons per day would increase costs by $7 per gallon * 100 gallons = $700.

Table 9.6 -Given the Data in Table 9.6, If Firm a Were