Table 10-4
The following table shows the total 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 $46,and for Firm A to eliminate two units of pollution,it would cost a total of $103.

-Refer to Table 10-4.If the government charged a fee of $101 per unit of pollution,how many units of pollution would the firms eliminate altogether?
A) 9
B) 12
C) 15
D) 16

Question

Table 10-4
The following table shows the total 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 $46,and for Firm A to eliminate two units of pollution,it would cost a total of $103.
 
-Refer to Table 10-4.If the government charged a fee of $101 per unit of pollution,how many units of pollution would the firms eliminate altogether?
A) 9 
B) 12 
C) 15 
D) 16

Quizplus · Accepted Answer

To determine the number of units of pollution that the firms would eliminate altogether, we need to find the point of intersection between the total cost curve and the horizontal line representing the cost of $101 per unit of pollution. This intersection point represents the level of pollution abatement that is economically efficient for the firms given the government fee.

Using the table, we can plot the total cost curve for each firm by connecting the points for each level of pollution. The resulting graph would show a downward sloping curve for each firm. Then, we can plot the horizontal line for a fee of $101 per unit of pollution.

The point of intersection between the total cost curve and the $101 fee line occurs when the firms have collectively eliminated a total of 15 units of pollution. Therefore, the correct answer is C) 15.

Table 10-4 the Following Table Shows the Total Costs for Each of Each