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Two Companies, Dirty Inc If the City Council Imposes a Tax of $91 Per

Question 84

Multiple Choice

Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below.  Process  A  B  C  D  E  (smoke/day)   (4 tons/day)   (3 tons/day)   (2 tons/day)   (1 ton/day)   (0ns/day)   Cost to Dirty Inc. ($/day)  $110$200$380$740$1,460 Cost to Filthy Inc. ($/day)  $400$430$490$580$700\begin{array} { | c | c | c | c | c | c | } \hline \text { Process } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { (smoke/day) } & \text { (4 tons/day) } & \text { (3 tons/day) } & \text { (2 tons/day) } & \text { (1 ton/day) } & \text { (0ns/day) } \\\hline \text { Cost to Dirty Inc. (\$/day) } & \$ 110 & \$ 200 & \$ 380 & \$ 740 & \$ 1,460 \\\hline \text { Cost to Filthy Inc. (\$/day) } & \$ 400 & \$ 430 & \$ 490 & \$ 580 & \$700\\\hline\end{array} If the City Council imposes a tax of $91 per day on each ton of smoke emitted, then what will be the total cost to society of the resulting reduction in pollution?


A) $90
B) $180
C) $270
D) $360

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