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Suppose That There Are Three Power-Generating Plants,all of Which Generate

Question 87

Multiple Choice

Suppose that there are three power-generating plants,all of which generate emissions.The table summarizes the cost of emission reduction for each firm given five different levels of pollution:  Tons of smoke emitted per day 43210 Total abatement cost, firm A 0$14$30$50$75 Total abatement cost, firm B 0$20$45$80$120 Total abatement cost, firm C 0$25$60$100$150\begin{array} { l l l l l r } \text { Tons of smoke emitted per day } & 4 & 3 & 2 & 1 & 0 \\\text { Total abatement cost, firm A } & 0 & \$ 14 & \$ 30 & \$ 50 & \$ 75 \\\text { Total abatement cost, firm B } & 0 & \$ 20 & \$ 45 & \$ 80 & \$ 120 \\\text { Total abatement cost, firm C } & 0 & \$ 25 & \$ 60 & \$ 100 & \$ 150\end{array}
Suppose the government requires the three firms to reduce pollution to 2 tons of smoke per day,for a total of 6 tons.This will result in a total cost of __________.


A) $59
B) $42
C) $230
D) $135

Correct Answer:

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