Refer to the Table above. If a regulatory agency simply mandated that the firm could emit a maximum of 5 tons/month and there were no emission charges, what would the firm's total abatement costs be?
A) $100
B) $265
C) $500
D) $765

Question

Quizplus · Accepted Answer

The firm's total abatement costs to reduce emissions to 5 tons/month would be the sum of the costs for reducing the first 5 tons of emissions, which are $15 + $25 + $45 + $80 + $100 = $265.

Refer to the Table Above