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.Suppose the government wanted to eliminate exactly 10 units of pollution.Which of the following fees per unit of pollution would achieve that goal?
A) $68
B) $74
C) $120
D) $134

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.Suppose the government wanted to eliminate exactly 10 units of pollution.Which of the following fees per unit of pollution would achieve that goal?
A) $68 
B) $74 
C) $120 
D) $134

Quizplus · Accepted Answer

To eliminate 10 units of pollution, we need to find the total cost for each firm to eliminate at least 10 units of pollution.

For firm A: $46 + $57 + $103 = $206 
For firm B: $95 + $79 + $53 = $227 
For firm C: $100 + $70 + $110 = $280 
For firm D: $120 + $60 = $180

The lowest total cost is for firm B, which would cost $227 to eliminate at least 10 units of pollution. Therefore, a fee of $227/10 units = $22.70 per unit needs to be charged to achieve the goal of eliminating 10 units of pollution. This is closest to option B ($74) so B is the best choice.

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