Suppose That There Are Three Power-Generating Plants,all of Which Generate

Two firms can use five different technologies to produce the same quantity of output: 1,2,3,4 and 5.The first technology is the cheapest,but also the dirtiest.The fifth technology is the most expensive,but results in the lowest levels of pollution.The amount of pollution emitted by each firm and the cost of the technologies are shown in the table. Suppose the firms are both currently using technology 1,and that the government adopts rules requiring each firm to reduce pollution by 20%.To comply,the firms will adopt technology ___ for a total cost of __________. A) 1;$1250. B) 2;$1500. C) 3;$2200. D) 4;$3600.

Two firms can use five different technologies to produce the same quantity of output: 1,2,3,4 and 5.The first technology is the cheapest,but also the dirtiest.The fifth technology is the most expensive,but results in the lowest levels of pollution.The amount of pollution emitted by each firm and the cost of the technologies are shown in the table. Suppose that the government imposes a tax of $150 per ton of pollution.As a result,Acme adopts technology __________,and FirmCo adopts technology _______. A) 2;1 B) 3;2 C) 3;3 D) 4;3