Question
In Eli City sanitation trucks dump garbage seven days a week at a dumping site. A barge removes the garbage from the dumping site and
In Eli City sanitation trucks dump garbage seven days a week at a dumping site. A barge removes the garbage from the dumping site and transports it to an incinerator where it is burned. Each time the barge is used the City incurs a fixed cost of $2,000 regardless of the amount of garbage removed. For each ton of garbage held at the dumping site the City incurs a cost of $100 per year, which reflects the cost of periodically disinfecting the pile and the social cost. Suppose garbage is supplied to the dumping site at a constant rate of 50 tons per day. Suppose the City would like to minimize the total cost of operating the barge and holding garbage at the dumping site. How large should the garbage accumulation be when the barge removes it? (Choose the option that is closest to the correct answer.)
Group of answer choices
368 tons
527 tons
854 tons
1105 tons
1350 tons
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