Table 9.5
-Given the data in Table 9.5, if Firm A were to reduce pollution from 1,000 gallons of wastewater per day to 0 gallons per day, production costs
A) would increase by $12.
B) would decrease by $12.
C) would not change.
D) cannot be calculated from the information above.

Question

Table 9.5
-Given the data in Table 9.5, if Firm A were to reduce pollution from 1,000 gallons of wastewater per day to 0 gallons per day, production costs
A) would increase by $12. 
B) would decrease by $12. 
C) would not change. 
D) cannot be calculated from the information above.

Quizplus · Accepted Answer

The marginal cost of pollution reduction is $12 per gallon. Reducing pollution from 1,000 gallons per day to 0 gallons per day would increase production costs by $12 * 1,000 = $12,000.

Table 9.5 -Given the Data in Table 9.5, If Firm a Were