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

question 168

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.  
Suppose the government decides to impose a tax on each ton of smoke emitted. What would be the lowest tax, in whole dollars, that would reduce emissions to 6 tons per day?

• A)$21 per ton
• B)$26 per ton
• C)$36 per ton
• D)$41 per ton

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Definitions:

Adjusted Gross Income

An individual's total gross income minus specific deductions, crucial for determining taxable income and eligibility for certain tax benefits.

AGI

Adjusted Gross Income, calculated as gross income minus certain adjustments, serving as the basis for various tax calculations.

Self-Employment Tax

A financial charge on self-employed persons to fund their Social Security and Medicare benefits.

Net Earnings

The amount of income generated after deducting the costs, expenses, and taxes from total revenue. It represents the actual profit of a business.