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The Cost of Controlling Emissions at a Firm Goes Up C(q)=3,500+150q2C ( q ) = 3,500 + 150 q ^ { 2 }

Question 54

Multiple Choice

The cost of controlling emissions at a firm goes up rapidly as the amount of emissions reduced goes up. Here is a possible model:
C(q) =3,500+150q2C ( q ) = 3,500 + 150 q ^ { 2 }
Where q is the reduction in emissions (in pounds of pollutant per day) and C is the daily cost to the firm (in dollars) of this reduction. Government clean air subsidies amount to $750 per pound of pollutant removed. How many pounds of pollutant should the firm remove each day to minimize net cost (cost minus subsidy)


A) 2 pounds
B) 10 pounds
C) 2.5 pounds
D) 5 pounds
E) 75 pounds

Correct Answer:

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