Reduction in Emissions MC to Reduce Emissions MC to Reduce Emissions

in tons by Steel Plant by Paper Plant

1 $ 400 $ 200

2 500 280

3 600 320

Table 28.1 Refer to Table 28.1.Suppose the government commands each firm to reduce its emissions by one ton each.What is the total cost?

Question

Reduction in Emissions	MC to Reduce Emissions	MC to Reduce Emissions
in tons	by Steel Plant	by Paper Plant
1	$ 400	$ 200
2	500	280
3	600	320

Table 28.1 Refer to Table 28.1.Suppose the government commands each firm to reduce its emissions by one ton each.What is the total cost?

Quizplus · Accepted Answer

The total cost is the sum of the marginal costs (MC) for each plant to reduce emissions by one ton each, which is $400 (Steel Plant) + $200 (Paper Plant) = $600.