Two Firms, Acme and FirmCo, Have Access to Five Production

question 166

Multiple Choice

Two firms, Acme and FirmCo, have access to five production processes, each of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the corresponding number of tons of smoke emitted are shown in the table below.  
If pollution is unregulated, the two firms will produce using process ________, and a total of ________ tons of smoke will be emitted each day.

• A)C; 12
• B)D; 4
• C)B; 16
• D)A; 20

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Definitions:

Group Polarization Effect

The tendency for a group's prevailing opinions to become more extreme following group discussion.

Risky Shift

The phenomenon where groups collectively decide on riskier actions or decisions than individuals would make on their own.

Believe More Strongly

The increased conviction or acceptance in the truth or existence of something.

Group

A collection of individuals who interact with one another, share similar characteristics, and collectively have a sense of unity or identity.