Table 10-3
The following table shows the marginal costs for each of four firms (A,B,C,and D)to eliminate units of pollution from their production processes.For example,for Firm A to eliminate one unit of pollution,it would cost $54,and for Firm A to eliminate a second unit of pollution it would cost an additional $67.

-Refer to Table 10-3.If the government charged a fee of $69 per unit of pollution,how many units of pollution would the firms eliminate altogether?
A) 7
B) 8
C) 9
D) 10

Question

Table 10-3
The following table shows the marginal costs for each of four firms (A,B,C,and D)to eliminate units of pollution from their production processes.For example,for Firm A to eliminate one unit of pollution,it would cost $54,and for Firm A to eliminate a second unit of pollution it would cost an additional $67.
 
-Refer to Table 10-3.If the government charged a fee of $69 per unit of pollution,how many units of pollution would the firms eliminate altogether?
A) 7 
B) 8 
C) 9 
D) 10

Quizplus · Accepted Answer

The correct answer is A because the fee of $69 per unit of pollution would make it too expensive for firms to produce any units of pollution beyond 7 units.

Table 10-3 the Following Table Shows the Marginal Costs for Each of Each