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:

Continuous Improvement

An ongoing effort to improve products, services, or processes to enhance quality and efficiency.

Current Performance

The immediate or recent results of an individual's or organization's activities or operations, measured against desired outcomes or benchmarks.

Statistical Quality Control

The measurement of work samples for compliance with quality standards.

Statistical Analysis

The collection, examination, interpretation, and presentation of data to identify patterns, trends, and relationships.