Three Polluting Factories Suppose Factory A emits 15,000 units of \"Yuck\" month
ID: 2440070 • Letter: T
Question
Three Polluting Factories
Suppose Factory A emits 15,000 units of "Yuck" monthly, Factory B emits 30,000 units, and Factory C emits 45,000 units. Also suppose that A's cost of reducing emissions is $1 per unit, B's cost is $2, and C's cost is $3.
(Three Polluting Factories) If the EPA wishes to reduce total emissions down to 45,000 units per; month, which of the following is the lowest-cost method?
Leave Factory A and B alone, and force C to reduce emissions to zero units per month.
Leave Factory C alone, and force both A and B to each reduce their emissions to zero units per month.
Leave Facotry A alone, and force both B and C to each reduce their emissions to 15,000 per month.
All of the above would be accomplished at the same cost.
Leave Factory A and B alone, and force C to reduce emissions to zero units per month.
Leave Factory C alone, and force both A and B to each reduce their emissions to zero units per month.
Leave Facotry A alone, and force both B and C to each reduce their emissions to 15,000 per month.
All of the above would be accomplished at the same cost.
Explanation / Answer
Answer
The correct option is (b) Leave Factory C alone, and force both A and B to each reduce their emissions to zero units per month.
Cost to reduce emission is least for factory A and A emmits 15000 units hence he will force A to reduce emmision to 0 units(No emmission). Now he has to reduce 30000 more units of emmissionand cost of reducing emmission is less for Factory B (than C) and B emmits 30000 units.Hence he will force B to reduce emmision to 0 units(No emmission). Total reduced emmisiion =45000
Hence correct option is (b)
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