Refer to the following information to answer the following questions.
Two firms both emit a pollutant,and the government wants to reduce emissions of this pollutant.Each firm can choose to emit up to six units.As firms reduce emissions,there is a marginal cost per unit.This data is presented in the accompanying table.

-The government allocates three allowances to each firm,where each allowance allows one unit to be emitted.If both firms now emit three units each,the total cost of reducing emissions for Firm 1 is ________ and the total cost of reducing emissions for Firm 2 is ________.

Question

Refer to the following information to answer the following questions.
Two firms both emit a pollutant,and the government wants to reduce emissions of this pollutant.Each firm can choose to emit up to six units.As firms reduce emissions,there is a marginal cost per unit.This data is presented in the accompanying table.
 
-The government allocates three allowances to each firm,where each allowance allows one unit to be emitted.If both firms now emit three units each,the total cost of reducing emissions for Firm 1 is ________ and the total cost of reducing emissions for Firm 2 is ________.

Quizplus · Accepted Answer

The total cost of reducing emissions for Firm 1 is $60 and for Firm 2 is $120, as each firm needs to reduce emissions by three units, and the cost per unit is given in the problem context.

Refer to the Following Information to Answer the Following Questions