The cost of controlling emissions at a firm goes up rapidly as the amount of emissions reduced goes up. Here is a possible model: where q is the reduction in emissions (in pounds of pollutant per day)and C is the daily cost (in dollars)of this reduction. Government clean-air subsidies to the firm are based on the formula where q is again the reduction in emissions (in pounds per day)and S is the subsidy (in dollars). Calculate the net cost function given the cost and subsidy above, and find the value of q that gives the lowest net cost. What is this lowest net cost?
A)q = $2, N ( q )= $2,300
B)q = $4, N ( q )= $2,300
C)q = $2, N ( q )= $4,600
D)q = $2.5, N ( q )= $2,375
E)q = $2.5, N ( q )= $2,300

Question

The cost of controlling emissions at a firm goes up rapidly as the amount of emissions reduced goes up. Here is a possible model:  where q is the reduction in emissions (in pounds of pollutant per day)and C is the daily cost (in dollars)of this reduction. Government clean-air subsidies to the firm are based on the formula  where q is again the reduction in emissions (in pounds per day)and S is the subsidy (in dollars). Calculate the net cost function  given the cost and subsidy above, and find the value of q that gives the lowest net cost. What is this lowest net cost?
A)q = $2, N ( q )= $2,300 
B)q = $4, N ( q )= $2,300 
C)q = $2, N ( q )= $4,600 
D)q = $2.5, N ( q )= $2,375 
E)q = $2.5, N ( q )= $2,300

Quizplus · Accepted Answer

The Answer of The cost of controlling emissions at a firm goes up rapidly as the amount of emissions reduced goes up. Here is a possible model:  where q is the reduction in emissions (in pounds of pollutant per day)and C is the daily cost (in dollars)of this reduction. Government clean-air subsidies to the firm are based on the formula  where q is again the reduction in emissions (in pounds per day)and S is the subsidy (in dollars). Calculate the net cost function  given the cost and subsidy above, and find the value of q that gives the lowest net cost. What is this lowest net cost?
A)q = $2, N ( q )= $2,300 
B)q = $4, N ( q )= $2,300 
C)q = $2, N ( q )= $4,600 
D)q = $2.5, N ( q )= $2,375 
E)q = $2.5, N ( q )= $2,300

The Cost of Controlling Emissions at a Firm Goes Up