The Cost of Controlling Emissions at a Firm Goes Up

question 34

Essay

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 x is the reduction in sulfur emissions, y is the reduction in lead emissions (in pounds of pollutant per day), and C is the daily cost to the firm (in dollars)of this reduction. Government clean-air subsidies amount to $500 per pound of sulfur and $50 per pound of lead removed. How many pounds of pollutant should the firm remove each day to minimize the net cost (cost minus subsidy)? Enter your answer as an ordered pair in the form ( x, y ).

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Definitions:

Assets

Assets held by a business that possess monetary worth and can be transformed into liquid cash.

Buildings

Long-term physical assets used for business operations, classified under fixed or non-current assets on the balance sheet.

Insurance Expense

The cost incurred by a company to obtain insurance coverage, recognized as an expense over the period the insurance coverage is applicable.