The Cost of Controlling Emissions at a Firm Goes Up

question 95

Multiple Choice

The cost of controlling emissions at a firm goes up rapidly as the amount of emissions reduced goes up. Here is a possible model: where q is the reduction in emissions (in pounds of pollutant per day) and C is the daily cost (in dollars) of this reduction. Government clean-air subsidies to the firm are based on the formula where q is again the reduction in emissions (in pounds per day) and S is the subsidy (in dollars) . Calculate the net cost function given the cost and subsidy above, and find the value of q that gives the lowest net cost. What is this lowest net cost?

• A)q = $2, N ( q )= $2,300
• B)q = $4, N ( q )= $2,300
• C)q = $2, N ( q )= $4,600
• D)q = $2.5, N ( q )= $2,375
• E)q = $2.5, N ( q )= $2,300

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Definitions:

Neo-Marxism

A strand of Marxist theory that combines elements of traditional Marxism with other intellectual traditions such as critical theory, aiming to update and reinvigorate Marxist analysis for contemporary conditions.

World-Systems Theory

A multidisciplinary approach to world history and social change that suggests there is a world economic system in which some countries benefit while others are exploited.

Historical Oriented Marxism

Historical Oriented Marxism is an approach within Marxist theory that emphasizes the historical and materialist analysis of societal development, class struggle, and social change.

Hegelian Marxists

Marxists who incorporate elements of Hegel's philosophy, focusing on dialectical methods and contradictions within society.