The Following Table Shows Four Firms, the Amount Each Pollutes

question 59

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. $\begin{array}{|c|c|c|c|}\hline \text { Firm } & \begin{array}{c}\text { Total Discharge (in } \\\text { tons) }\end{array} & \begin{array}{c}\text { Marginal Cost of } \\\text { Cleanup } \\\text { (per ton) }\end{array} & \begin{array}{c}\text { Total Cost of } \\\text { Cleanup }\end{array} \\\hline \text { A } & 60 & \$ 5.00 & \$ 300 \\\hline \text { B } & 70 & \$ 8.00 & \$ 560 \\\hline \text { C } & 80 & \$ 7.50 & \$ 600 \\\hline \text { D } & 90 & \$ 4.00 & \$ 360 \\\hline\end{array}$
The total discharge of these four companies is 300 tons. Assume there is no one else who pollutes. If the government establishes a regulation requiring each company to reduce pollution by 50 percent, what will be spent on reducing pollution?

• A) $660
• B) $910
• C) $1,050
• D) $1,710

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Definitions:

Age-Based

Referring to criteria or classifications determined by an individual's age.

Title VII

A section of the Civil Rights Act of 1964 that prohibits employment discrimination based on race, color, religion, sex, or national origin.

Employers

Organizations or individuals who engage the services of employees or workers under an employment contract or agreement.

Interstate Commerce

Trade, traffic, or transportation involving the crossing of state boundaries.