Solved

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

Question 53

Multiple Choice

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}
It would cost Firm X ______ to reduce emissions by one ton if it currently emits 3 tons, and ______ to reduce emissions by one ton if it currently emits 2 tons.


A) $14; $25
B) $14; $16
C) $16; $25
D) $30; $55

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents