Two firms, Thneeds-R-Us and Mucky Motors have access to five production processes, each one of which has a different cost and gives off a different amount of pollution corresponding number of tons of smoke emitted are as shown in the table below. What is the cost to Mucky Motors of moving from process B to process C? Process (smoke) Cost to Thneeds-R-Us ($/day) Cost to Mucky Motors ($/day) A (4 tons per day) 50 100 B (3 tons per day) 70 180 C (2 tons D (1 tons per day) per day) 200 1,000 120 500 E (0 tons per day) 500 2,000

Two firms, Thneeds-R-Us and Mucky Motors have access to five production processes, each one of which has a different cost and gives off a different amount of pollution corresponding number of tons of smoke emitted are as shown in the table below. What is the cost to Mucky Motors of moving from process B to process C? Process (smoke) Cost to Thneeds-R-Us ($/day) Cost to Mucky Motors ($/day) A (4 tons per day) 50 100 B (3 tons per day) 70 180 C (2 tons D (1 tons per day) per day) 200 1,000 120 500 E (0 tons per day) 500 2,000

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Two firms, Thneeds-R-Us and Mucky Motors have access to five production processes, each one of which has a different cost and gives off a different amount of pollution. The daily costs of the processes and the
corresponding number of tons of smoke emitted are as shown in the table below. What is the cost to Mucky Motors of moving from process B to process C?
Process (smoke)
Cost to Thneeds-R-Us ($/day)
Cost to Mucky Motors ($/day)
Multiple Choice
O
O
$500 per day
$250 per day
$320 per day
$180 per day
A (4 tons.
per day)
50
100
B (3 tons
per day)
70
180
C (2 tons
per day)
120
500
D (1 tons
per day)
200
1,000
E (0 tons
per day)
500
2,000

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