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

question 56

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. $\begin{array}{|c|c|c|c|c|c|}\hline \text { Process } & \text { A } & \text { B } & \text { C } & \text { D } & \text { E } \\\text { (smoke/day) } & \text { (4 tons/day) } & \text { (3 tons/day) } & \text { (2 tons/day) } & (1 \text { ton/day) } & \text { (0 tons/day) } \\\hline \text { Cost to Firm } X(\$ / \text { day) } & \$ 500 & \$ 514 & \$ 530 & \$ 555 & \$ 585 \\\hline \text { Cost to Firm Y (\$/day) } & \$ 400 & \$ 420 & \$ 445 & \$ 480 & \$ 520 \\\hline \text { Cost to Firm Z(\$/day) } & \$ 300 & \$ 325 & \$ 360 & \$ 400 & \$ 550 \\\hline\end{array}$
Suppose the government 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:

National Child Labor Committee

An American organization founded in 1904 with the aim of abolishing child labor, seeking to promote laws and policies that protect children from exploitation in the workforce.

Reform Efforts

Actions or movements aimed at making changes in societal structures or policies to improve conditions.

Opposed

To be against or in contrast with an idea, proposal, or entity, expressing disagreement or resistance.

Juvenile Court System

A specialized court system dealing with minors who are accused of violating the law, focusing on rehabilitation and parental responsibility rather than punishment.