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The Cost of Controlling Emissions at a Firm Goes Up

Question 26

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

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