Suppose that there are three power-generating plants,all of which generate emissions.The table summarizes the cost of emission reduction for each firm given five different levels of pollution: $\begin{array}{lllllr}
\text { Tons of smoke emitted per day } & 4 & 3 & 2 & 1 & 0 \
\text { Total abatement cost, firm A } & 0 & \$ 14 & \$ 30 & \$ 50 & \$ 75 \
\text { Total abatement cost, firm B } & 0 & \$ 20 & \$ 45 & \$ 80 & \$ 120 \
\text { Total abatement cost, firm C } & 0 & \$ 25 & \$ 60 & \$ 100 & \$ 150
\end{array}$
It would cost Firm A ____ to reduce emissions by one ton if it currently emits 3 tons,and ___ to reduce an additional ton of emissions if it currently emits 2 tons.

Question

Quizplus · Accepted Answer

To find the cost of reducing one additional ton of emissions, we subtract the total cost of reducing the current level of emissions from the total cost of reducing the next level of emissions.

For Firm A:
- To reduce emissions from 3 to 2 tons, the cost is $30 - $14 = $16 to reduce one ton.
- To reduce emissions from 2 to 1 tons, the cost is $50 - $30 = $20 to reduce one ton.

For Firm B:
- To reduce emissions from 3 to 2 tons, the cost is $45 - $20 = $25 to reduce one ton.
- To reduce emissions from 2 to 1 tons, the cost is $80 - $45 = $35 to reduce one ton.

For Firm C:
- To reduce emissions from 3 to 2 tons, the cost is $60 - $25 = $35 to reduce one ton.
- To reduce emissions from 2 to 1 tons, the cost is $100 - $60 = $40 to reduce one ton.

Therefore, Firm A has the lowest cost to reduce one additional ton of emissions at each level, making choice C the correct answer.

Suppose That There Are Three Power-Generating Plants,all of Which Generate