There are two factories in a small town. Both of them emit carbon dioxide into the air. Their current monthly emissions, as well as their total costs for reducing emissions in 20-ton increments, are listed in the tables below. Factory 1 Current emissions (tons/month) 120 Total cost of reducing emissions by 20 tons/month $50 Total cost of reducing emissions by 40 tons/month $150 Total cost of reducing emissions by 60 tons/month $270 Total cost of reducing emissions by 80 tons/month $410 Total cost of reducing emissions by 100 tons/month $570 Factory 2 Current emissions (tons/month) 160 Total cost of reducing emissions by 20 tons/month $20 Total cost of reducing emissions by 40 tons/month $60 Total cost of reducing emissions by 60 tons/month $110 Total cost of reducing emissions by 80 tons/month $200 Total cost of reducing emissions by 100 tons/month $300
There are two factories in a small town. Both of them emit carbon dioxide into the air. Their current monthly emissions, as well as their total costs for reducing emissions in 20-ton increments, are listed in the tables below. Factory 1 Current emissions (tons/month) 120 Total cost of reducing emissions by 20 tons/month $50 Total cost of reducing emissions by 40 tons/month $150 Total cost of reducing emissions by 60 tons/month $270 Total cost of reducing emissions by 80 tons/month $410 Total cost of reducing emissions by 100 tons/month $570 Factory 2 Current emissions (tons/month) 160 Total cost of reducing emissions by 20 tons/month $20 Total cost of reducing emissions by 40 tons/month $60 Total cost of reducing emissions by 60 tons/month $110 Total cost of reducing emissions by 80 tons/month $200 Total cost of reducing emissions by 100 tons/month $300
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![There are two factories in a small town. Both of them emit carbon dioxide into the air. Their current monthly emissions, as well as their total costs for
reducing emissions in 20-ton increments, are listed in the tables below.
Factory 1
Current emissions (tons/month)
120
Total cost of reducing emissions by 20 tons/month
$50
Total cost of reducing emissions by 40 tons/month
Total cost of reducing emissions by 60 tons/month
Total cost of reducing emissions by 80 tons/month
Total cost of reducing emissions by 100 tons/month
$150
$270
$410
$570
Factory 2
Current emissions (tons/month)
160
Total cost of reducing emissions by 20 tons/month
$20
Total cost of reducing emissions by 40 tons/month
$60
Total cost of reducing emissions by 60 tons/month
$110
Total cost of reducing emissions by 80 tons/month
$200
Total cost of reducing emissions by 100 tons/month
$300](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2aced0b0-9e84-4add-8f13-67e7b6c5c9ae%2Fc0e02a52-c3ca-47a5-9320-f26877d6d9b7%2Fz5a4m9gi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:There are two factories in a small town. Both of them emit carbon dioxide into the air. Their current monthly emissions, as well as their total costs for
reducing emissions in 20-ton increments, are listed in the tables below.
Factory 1
Current emissions (tons/month)
120
Total cost of reducing emissions by 20 tons/month
$50
Total cost of reducing emissions by 40 tons/month
Total cost of reducing emissions by 60 tons/month
Total cost of reducing emissions by 80 tons/month
Total cost of reducing emissions by 100 tons/month
$150
$270
$410
$570
Factory 2
Current emissions (tons/month)
160
Total cost of reducing emissions by 20 tons/month
$20
Total cost of reducing emissions by 40 tons/month
$60
Total cost of reducing emissions by 60 tons/month
$110
Total cost of reducing emissions by 80 tons/month
$200
Total cost of reducing emissions by 100 tons/month
$300
![O See Hint
Assume that the existing technology does not allow for reductions in emissions beyond 100 tons/month. That is, the most each factory
can reduce its emissions is 100 tons/month. Also assume that if a factory owner is indifferent between reducing pollution or paying
taxes, the factory owner will choose to reduce pollution.
With those assumptions in mind, suppose the government has a goal of reducing total monthly emissions by 160 tons. To achieve this
goal, the government has decided to impose a tax on pollution. That is, for every 20-ton emission, a factory will have to pay some
amount of money. To achieve (but not exceed) the desired reduction in emissions, the tax will have to be set equal to or above $
but below $
per 20 tons/month.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2aced0b0-9e84-4add-8f13-67e7b6c5c9ae%2Fc0e02a52-c3ca-47a5-9320-f26877d6d9b7%2Fyp9t2hk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:O See Hint
Assume that the existing technology does not allow for reductions in emissions beyond 100 tons/month. That is, the most each factory
can reduce its emissions is 100 tons/month. Also assume that if a factory owner is indifferent between reducing pollution or paying
taxes, the factory owner will choose to reduce pollution.
With those assumptions in mind, suppose the government has a goal of reducing total monthly emissions by 160 tons. To achieve this
goal, the government has decided to impose a tax on pollution. That is, for every 20-ton emission, a factory will have to pay some
amount of money. To achieve (but not exceed) the desired reduction in emissions, the tax will have to be set equal to or above $
but below $
per 20 tons/month.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 4 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![ENGR.ECONOMIC ANALYSIS](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9780190931919/9780190931919_smallCoverImage.gif)
![Principles of Economics (12th Edition)](https://www.bartleby.com/isbn_cover_images/9780134078779/9780134078779_smallCoverImage.gif)
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
![Engineering Economy (17th Edition)](https://www.bartleby.com/isbn_cover_images/9780134870069/9780134870069_smallCoverImage.gif)
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
![Principles of Economics (MindTap Course List)](https://www.bartleby.com/isbn_cover_images/9781305585126/9781305585126_smallCoverImage.gif)
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
![Managerial Economics: A Problem Solving Approach](https://www.bartleby.com/isbn_cover_images/9781337106665/9781337106665_smallCoverImage.gif)
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
![Managerial Economics & Business Strategy (Mcgraw-…](https://www.bartleby.com/isbn_cover_images/9781259290619/9781259290619_smallCoverImage.gif)
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education