Two Companies, Dirty Inc If the City Council Imposes a Tax of $91 Per

question 84

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 the City Council imposes a tax of $91 per day on each ton of smoke emitted, then what will be the total cost to society of the resulting reduction in pollution?

• A)$90
• B)$180
• C)$270
• D)$360

Acknowledge the significance and consequences of certifications and opinions provided by professionals.

Comprehend the legal doctrines such as ostensible authority and negligent credentialing and their applications.

Recognize the legal protections afforded by privileges such as attorney-client privilege and doctor-patient privilege.

Understand statutory regulations, including the Securities Act of 1933, related to professional accountability and public protection.

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Definitions:

Demand Elasticity

A measure of how much the quantity demanded of a good responds to a change in the price of that good, indicating the sensitivity of consumers to price changes.

Price Fall

A reduction in the market price of a good or service, which can influence consumer behavior and economic conditions.

Demand Function

A mathematical expression that shows the relationship between the quantity demanded of a good and its price, holding other factors constant.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price or other economic variables.