Two power plants exist in the metropolis of Hooterville. Both emit sulfur dioxide. The town would...

 

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Two power plants exist in the metropolis of Hooterville. Both emit sulfur dioxide. The town would like to reduce sulfur dioxide from their current level of 1 million liters per year each to an average of 500,000 liters per year (1 million liters total). The Hooterville legislature is considering two proposals: (1) require each company to cut their emissions by half, (2) tax the pollution. The chart below indicates the cost to each firm of reducing their emissions.< Pollution Reduction (x 100,000 liters)< Firm A's cost (x $1 million)< Firm B's cost (x $1 million)< ܒ1 ܒ1 14 a. How much would option 1 cost? (10 points)< b. How much would option 2 cost? (15 points)< 44 24 34 2< 34 54 34 64 10 54 64 84 12 15¹ 21< 74 17 28< Two power plants exist in the metropolis of Hooterville. Both emit sulfur dioxide. The town would like to reduce sulfur dioxide from their current level of 1 million liters per year each to an average of 500,000 liters per year (1 million liters total). The Hooterville legislature is considering two proposals: (1) require each company to cut their emissions by half, (2) tax the pollution. The chart below indicates the cost to each firm of reducing their emissions.< Pollution Reduction (x 100,000 liters)< Firm A's cost (x $1 million)< Firm B's cost (x $1 million)< ܒ1 ܒ1 14 a. How much would option 1 cost? (10 points)< b. How much would option 2 cost? (15 points)< 44 24 34 2< 34 54 34 64 10 54 64 84 12 15¹ 21< 74 17 28<

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Answer Initial reduction emission is 1 million liters per year by firm A and firm B Government wants to cut the pollution by half ie each on average e... View the full answer