$8$

Multiple Choice

$10$ points

A water utility is considering the following alternative ways to stretch the existing low water supply available for residential use. Which method should they use?

Implement a tiered pricing program for higher volume users where the utility pays: $1,000,000$ gallons per day at a cost $$0\mathrm{.}30$ per gallon for first $1,000,000$ gallons. $2,000,000$ gallons per day at a cost $$0\mathrm{.}60$ per gallon for the next $2,000,000$ gallons. $3,000,000$ gallons per day at a cost $$0\mathrm{.}90$ per gallon for the next $3,000,000$ gallons. $4,000,000$ gallons per day at a cost $$1\mathrm{.}20$ per gallon for the next $4,000,000$ gallons.

Use $40,000,000$ gallons per day of recycled water at a cost of $$0\mathrm{.}25$ per gallon to reduce the demand for new water.

Use a new water source at $$1\mathrm{.}00$ per gallon for $10,000,000$ gallons per day.

Use $10,000,000$ gallons per day of recycled water at a cost of $$0\mathrm{.}25$ per gallon and increase the cost of water of $30,000,000$ gallons per day by an additional $$0\mathrm{.}20$ per gallon.