Suppose There Are Three Power-Generating Plants, Each of Which Has

question 107

Multiple Choice

Suppose there are three power-generating plants, each of which has access to 5 different production processes. The table below summarizes the cost of each production process and the corresponding number of tons of smoke emitted each.  
The least costly way of lowering smoke emissions from 12 tons to 9 tons per day would be for:

• A)each firm to reduce emissions by 1 ton, emitting 3 tons each.
• B)Firm X to emit 2 tons, Firm Y to emit 3 tons and Firm Z to emit 4 tons.
• C)Firm X to emit 4 tons, Firm Y to emit 3 tons and Firm Z to emit 2 tons.
• D)Firm X to emit 1 ton, Firm Y to emit 4 tons and Firm Z to emit 4 tons.

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Definitions:

Compound Interest

Interest calculated on the initial principal and also on the accumulated interest of previous periods of a deposit or loan.

Future Value

The estimated amount of money an investment is expected to be worth at the end of a specified period, accounting for interest or capital gains.

Compounded Semiannually

A method of calculating interest where the interest is added to the principal amount twice a year, leading to compound growth.

Total Amount

The complete sum or quantity, including all parts, elements, or aspects of something.