Refer to the Following Information to Answer the Questions That

question 92

Multiple Choice

Refer to the following information to answer the questions that follow.
Two firms both emit a pollutant, and the government wants to reduce emissions of this pollutant. Each firm can choose to emit up to six units. As firms reduce emissions, there is a marginal cost per unit. This data is presented in the accompanying table.

-The government allocates three allowances to each firm,where each allowance allows one unit to be emitted.If both firms now emit three units each,the total cost of reducing emissions for Firm 1 is ________ and the total cost of reducing emissions for Firm 2 is ________.

• A) $40; $60
• B) $180; $360
• C) $120; $240
• D) $60; $120
• E) $30; $60

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Definitions:

R

Often used as a symbol representing the interest rate or rate of return in financial equations.

Budgeted Sales

The projected amount of sales revenue a company expects to earn over a specific period, often used for planning purposes.

Actual Sales

The real revenue generated from goods or services sold, measured within a specific period.

Implied Value

a value that is not directly stated but can be derived from given information through analysis or calculation.