Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.ProcessABCDE(smoke/day)(4 tons/day)(3 tons/day)(2 tons/day)(1 tons/day)(0 tons/day)Cost to Acme ($/day)$750$800$1,000$1,400$2,000Cost to FirmCo ($/day)$500$750$1,200$2,200$4,000 If pollution is unregulated, the two firms will produce using process ________, and a total of ________ tons of smoke will be emitted each day.
A. C; 12
B. A; 20
C. D; 4
D. B; 16
Answer: B
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Refer to the figure above. What is the change in total revenue due to a price reduction from $6 to $4?
A) The total revenue increases by $300. B) The total revenue decreases by $600. C) The total revenue increases by $200. D) The total revenue increases by $600.
Which of the following functions of money would be least affected if the economy experiences high rates of inflation?
A) unit of account B) store of value C) standard of deferred payment D) medium of exchange
Refer to the graph shown. If the monopoly firm maximizes profit, it will produce:
A. 25 units of output and charge a price of $2.50 per unit. B. 30 units of output and charge a price of $2.00 per unit. C. 15 units of output and charge a price of $3.50 per unit. D. 15 units of output and charge a price of $2.00 per unit.
If quantity demanded rises significantly following a moderate price cut, then demand is:
A. Elastic. B. Inelastic. C. Unitary elastic. D. Most likely elastic.