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Suppose There Are Three Power-Generating Plants, Each of Which Has

Question 37

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Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.  Process  A  B  C  D  E  (smoke/day)   (4 tons/day)   (3 tons/day)   (2 tons/day)  (1 ton/day)   (0 tons/day)   Cost to Firm X($/ day)  $500$514$530$555$585 Cost to Firm Y ($/day)  $400$420$445$480$520 Cost to Firm Z($/day)  $300$325$360$400$550\begin{array}{|c|c|c|c|c|c|}\hline \text { Process } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\text { (smoke/day) } & \text { (4 tons/day) } & \text { (3 tons/day) } & \text { (2 tons/day) } & (1 \text { ton/day) } & \text { (0 tons/day) } \\\hline \text { Cost to Firm } X(\$ / \text { day) } & \$ 500 & \$ 514 & \$ 530 & \$ 555 & \$ 585 \\\hline \text { Cost to Firm Y (\$/day) } & \$ 400 & \$ 420 & \$ 445 & \$ 480 & \$ 520 \\\hline \text { Cost to Firm Z(\$/day) } & \$ 300 & \$ 325 & \$ 360 & \$ 400 & \$ 550 \\\hline\end{array}
The least costly way of lowering smoke emissions from 12 tons to 9 tons per day would be for:


A) each firm to reduce emissions by 1 ton, emitting 3 tons each.
B) Firm X to emit 2 tons, Firm Y to emit 3 tons and Firm Z to emit 4 tons.
C) Firm X to emit 4 tons, Firm Y to emit 3 tons and Firm Z to emit 2 tons.
D) Firm X to emit 1 ton, Firm Y to emit 4 tons and Firm Z to emit 4 tons.

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