Two Companies, Dirty Inc If Pollution Is Unregulated, Then a Total of ______ Tons

question 83

Multiple Choice

Two companies, Dirty Inc. and Filthy Inc., each of which has access to 5 different production processes, each of which has a different cost and produces a different amount of pollution. The daily costs of the processes and the number of tons of smoke emitted are shown in the table below. $$\begin{array} { | c | c | c | c | c | c | } \hline \text { Process } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\hline \text { (smoke/day) } & \text { (4 tons/day) } & \text { (3 tons/day) } & \text { (2 tons/day) } & \text { (1 ton/day) } & \text { (0ns/day) } \\\hline \text { Cost to Dirty Inc. (\$/day) } & \$ 110 & \$ 200 & \$ 380 & \$ 740 & \$ 1,460 \\\hline \text { Cost to Filthy Inc. (\$/day) } & \$ 400 & \$ 430 & \$ 490 & \$ 580 &\$700 \\\hline\end{array}$$ If pollution is unregulated, then a total of ______ tons of smoke will be emitted each day.

• A)1
• B)2
• C)4
• D)8

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Definitions:

Discretionary Fiscal Policy

Government policy actions, like changing tax rates and spending levels, aimed at influencing economic activity based on current conditions.

Legislative Decision-Making

The process by which elected representatives create, modify, or repeal laws within a governmental legislative body.

Drawn Out

Prolonged over time or made to last longer than necessary, often referring to events or processes.

Consumption Decisions

Choices made by individuals or households on purchasing goods and services with their available income.