Air Scrubbers A local paper manufacturing plant emits nitrogen oxide into the air and has decided to
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Air Scrubbers
A local paper manufacturing plant emits nitrogen oxide into the air and has decided to install air scrubbers to reduce the amount of pollution. Each scrubber costs $250,000 and the Environmental Protection Agency (EPA) fines the plant $6,500 for every part of pollution emitted per million.
Number of air scrubbers | Amount of pollution (parts per million) |
0 1 2 3 4 5 | 250 180 120 70 30 0 |
Air Scrubbers - Question #1
Construct a table showing the marginal benefit of each scrubber. (6)
Air Scrubbers - Question #2
Based on the information above, how many air scrubbers should the plant install in order to minimize the total cost of pollution? Explain your answer using marginal analysis (4)
Related Book For
Intermediate Accounting
ISBN: 978-0071339476
Volume 1, 6th Edition
Authors: Beechy Thomas, Conrod Joan, Farrell Elizabeth, McLeod Dick I
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