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:
Where q is the reduction in emissions (in pounds of pollutant per day) and C is the daily cost (in dollars) of this reduction. Government clean-air subsidies to the firm are based on the formula
Where q is again the reduction in emissions (in pounds per day) and S is the subsidy (in dollars) . Calculate the net cost function
Given the cost and subsidy above, and find the value of q that gives the lowest net cost. What is this lowest net cost
A)
B)
C)
D)
E)
Correct Answer:

Verified
Correct Answer:
Verified
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