Two firms, Gene's Gloves and Wally's Wallets, have factories near a lake. Both firms use a chemical for tanning leather. Some of this chemical runs into the lake. Each year Gene's Gloves dumps 15,000 gallons and Wally's Wallets dumps 25,000 gallons into the lake. A new study has found that fish and other wildlife are negatively impacted by this chemical. The government has decided to cap the amount that the factories can dump into the river at 10,000 gallons per year. For an addition $1 per gallon, Wally's Wallets is able to substitute each gallon of harmful chemical for one gallon of a harmless alternative. Gene's Gloves needs to use the harmful but more effective chemical for production. It costs $3 per gallon to safely dispose of the harmful chemical. Assume that Gene's Gloves and Wally's Wallets maintain the same level of production under the new environmental restrictions. 1. Suppose the government gives each firm the right to dump 5,000 gallons each. If the firms cannot buy or sell these dumping rights, what is the total cost to both firms for complying with the regulation? 2. If the firms can buy or sell these rights, how much of the chemical will Gene's Gloves dump into the lake, and how much will the ability to dump 1 gallon of the chemical into the lake cost? 15.000 gallons between $1 and $3
Two firms, Gene's Gloves and Wally's Wallets, have factories near a lake. Both firms use a chemical for tanning leather. Some of this chemical runs into the lake. Each year Gene's Gloves dumps 15,000 gallons and Wally's Wallets dumps 25,000 gallons into the lake. A new study has found that fish and other wildlife are negatively impacted by this chemical. The government has decided to cap the amount that the factories can dump into the river at 10,000 gallons per year. For an addition $1 per gallon, Wally's Wallets is able to substitute each gallon of harmful chemical for one gallon of a harmless alternative. Gene's Gloves needs to use the harmful but more effective chemical for production. It costs $3 per gallon to safely dispose of the harmful chemical. Assume that Gene's Gloves and Wally's Wallets maintain the same level of production under the new environmental restrictions. 1. Suppose the government gives each firm the right to dump 5,000 gallons each. If the firms cannot buy or sell these dumping rights, what is the total cost to both firms for complying with the regulation? 2. If the firms can buy or sell these rights, how much of the chemical will Gene's Gloves dump into the lake, and how much will the ability to dump 1 gallon of the chemical into the lake cost? 15.000 gallons between $1 and $3
Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018
18th Edition
ISBN:9780079039897
Author:Carter
Publisher:Carter
Chapter4: Equations Of Linear Functions
Section4.5: Correlation And Causation
Problem 2AGP
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