Suppose That There Are Three Power-Generating Plants,all of Which Generate

question 42

Multiple Choice

Suppose that there are three power-generating plants,all of which generate emissions.The table summarizes the cost of emission reduction for each firm given five different levels of pollution: $$\begin{array} { l l l l l r } \text { Tons of smoke emitted per day } & 4 & 3 & 2 & 1 & 0 \\\text { Total abatement cost, firm A } & 0 & \$ 14 & \$ 30 & \$ 50 & \$ 75 \\\text { Total abatement cost, firm B } & 0 & \$ 20 & \$ 45 & \$ 80 & \$ 120 \\\text { Total abatement cost, firm C } & 0 & \$ 25 & \$ 60 & \$ 100 & \$ 150\end{array}$$
Suppose that the government imposes a tax of $20 per ton of pollution generated.If Firm A produces 2 tons of smoke,its abatement costs plus taxes will total ____,and if Firm A produces 3 tons of smoke,its abatement costs plus taxes will total ____.Firm A will be better off emitting

• A)$30;$14;3 tons than 2 tons
• B)$40;$24;3 tons than 2 tons
• C)$36;$74;2 tons than 3 tons
• D)$70;$74;2 tons than 3 tons

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Definitions:

Conditioned Stimulus

An initially neutral signal that, following frequent association with an unconditioned stimulus, triggers a learned reaction.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally triggers a response without the need for prior learning.

Phobia Learning

The process through which individuals acquire phobias, often involving the conditioning of fear responses to certain objects or situations.

Disulfiram

A medication primarily used to treat chronic alcoholism by producing an acute sensitivity to alcohol.