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The Following Table Shows Four Firms, the Amount Each Pollutes

question 19

Multiple Choice

The following table shows four firms, the amount each pollutes, the marginal cost for each firm to clean up pollution, and the total cost to each firm of eliminating all pollution.  Firm  Total Discharge (in  tons)   Marginal Cost of  Cleanup  (per ton)   Total Cost of  Cleanup  A 60$5.00$300 B 70$8.00$560 C 80$7.50$600 D 90$4.00$360\begin{array}{|c|c|c|c|}\hline \text { Firm } & \begin{array}{c}\text { Total Discharge (in } \\\text { tons) }\end{array} & \begin{array}{c}\text { Marginal Cost of } \\\text { Cleanup } \\\text { (per ton) }\end{array} & \begin{array}{c}\text { Total Cost of } \\\text { Cleanup }\end{array} \\\hline \text { A } & 60 & \$ 5.00 & \$ 300 \\\hline \text { B } & 70 & \$ 8.00 & \$ 560 \\\hline \text { C } & 80 & \$ 7.50 & \$ 600 \\\hline \text { D } & 90 & \$ 4.00 & \$ 360 \\\hline\end{array}
The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes. If the government establishes an effluent fee of $7.00 per ton, how much would the firms spend on reducing pollution?

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Definitions:

Tolerance

A progressive decrease in responsiveness to a drug with continued use.

Extinction

The gradual weakening and disappearance of a conditioned response tendency.

Abstinence Syndrome

A group of symptoms that occur upon sudden withdrawal from substances to which the body has become dependent, including drugs or alcohol.

Withdrawal Illness

Withdrawal illness refers to the physical and mental symptoms experienced by individuals who cease or reduce the intake of addictive substances to which they have become dependent.

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