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

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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.  Process  A  B  C  D  E  (smoke/day)   (4 tons/day)   (3 tons/day)   (2 tons/day)  (1 ton/day)   (0 tons/day)   Cost to Firm X($/ day)  $500$514$530$555$585 Cost to Firm Y ($/day)  $400$420$445$480$520 Cost to Firm Z($/day)  $300$325$360$400$550\begin{array}{|c|c|c|c|c|c|}\hline \text { Process } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\text { (smoke/day) } & \text { (4 tons/day) } & \text { (3 tons/day) } & \text { (2 tons/day) } & (1 \text { ton/day) } & \text { (0 tons/day) } \\\hline \text { Cost to Firm } X(\$ / \text { day) } & \$ 500 & \$ 514 & \$ 530 & \$ 555 & \$ 585 \\\hline \text { Cost to Firm Y (\$/day) } & \$ 400 & \$ 420 & \$ 445 & \$ 480 & \$ 520 \\\hline \text { Cost to Firm Z(\$/day) } & \$ 300 & \$ 325 & \$ 360 & \$ 400 & \$ 550 \\\hline\end{array}
Suppose the government imposes a tax of $21 on each ton of smoke emitted. To minimize costs, Firm X will emit ______ tons; Firm Y will emit ______ tons, and Firm Z will emit ______ tons.

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Definitions:

Economic Value Added

A measure of a company's financial performance based on the residual wealth calculated by deducting cost of capital from its operating profit.

Negative Net Cash Flow

A financial situation where a company's cash outflows exceed its cash inflows for a specific period, indicating potential financial trouble.

Issue Of Bonds

The process by which a borrower issues bonds to lenders or investors as a way of raising capital.

Amortization Expenses

The gradual write-off of the initial cost of intangible assets over a period of time, reflecting their consumption, expiration, or obsolescence.

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