See below. It the governmen t ordered each plant to reduce emissions by one ton,

Question

See below. It the governmen t ordered each plant to reduce emissions by one ton, which of the following about the total cost is true? Select one: o a The total cost of carrying out this government order would be 1, 700,000 O b. The total cost of carrying out this government order would be 600,000 O G. The total cost of carrying out this government order would be 900,000 d. The total cost of carrying out this government order would be 700,000 Plant A is emitting 2 tons of pollutant and Plant B 1s enitting 4 tons of pollutant each day. The government decides that the combined level of pollution enission from the two plants should not exceed 4 tons per day. (A total reduction of two tons) Reduction in Tons Per Day Marginal Cost of Control at: Plant A Plant B 200,000 400/000 700,000 1,000,000 1, 600, 000 3,200, 000

Explanation / Answer

if the goveernment ordered each plant to reduce emissions by one ton, whihc of the following about the totoal cost is true

Correct Answer:- the total cost of carrying out this government order would be 900,000

Reason:- Cost of reduction of 1 ton pollution for plant A = 200,000 and for plant B=700,000

so total cost = 200,000+700,000=900,000

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