Two Firms Can Use Five Different Technologies to Produce the Same

question 37

Multiple Choice

Two firms can use five different technologies to produce the same quantity of output: 1,2,3,4 and 5.The first technology is the cheapest,but also the dirtiest.The fifth technology is the most expensive,but results in the lowest levels of pollution.The amount of pollution emitted by each firm and the cost of the technologies are shown in the table. $\begin{array}{lllll}\text { Technology } & 1 & 2 & 3 & 4 & 5 \\\text { Emissions } & 10 \text { tons } & 8 \text { tons } & 6 \text { tons } & 4 \text { tons } & 2 \text { tons } \\\text { Acme's Costs } & \$ 750 & \$ 800 & \$ 1000 & \$ 1400 & \$ 2000 \\\text { FirmCo's Costs } & \$ 500 & \$ 700 & \$ 1200 & \$ 2200 & \$ 4000\end{array}$
Suppose that the government imposes a tax of $150 per ton of pollution.As a result,pollution emissions are __________ tons for a total cost of ____.

• A) 6;$4200
• B) 8;$3600
• C) 10;$3600
• D) 14;$1700

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Definitions:

Putamen

A round structure located at the base of the forebrain, part of the basal ganglia, involved in a variety of complex movements and implicated in various neurological disorders.

Cerebellum

A part of the brain located at the back of the skull, primarily responsible for coordinating voluntary movements, balance, and posture.

Genus Australopithecus

A genus of early hominids that lived in Africa and are known for their role in human evolution, including species like Australopithecus afarensis.

Ancestors

Individuals or entities from whom one is descended, often referring to more remote generations in the context of family lineage or evolutionary history.