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:

Pound-Denominated

Refers to financial assets or transactions valued or conducted in British pounds sterling.

Foreign Bond

A bond issued in a domestic market by a foreign entity, in the domestic market's currency, as a means for the issuer to raise capital from investors in that market.

Sinking Funds

Reserves of money set aside by a corporation or government to repay a debt or bond issue at or before maturity.

Bondholder

An investor who owns bonds issued by a corporation or government, lending them money in exchange for periodic interest payments and the return of principal at maturity.