Two firms can use five different technologies to produce the same quantity of output: 1, 2, 3, 4 and 5. The first technology is the
Two firms can use five different technologies to produce the same quantity of output: 1, 2, 3, 4 and 5. The first technology is the cheapest, but also the dirtiest. The fifth technology is the most expensive, but results in the lowest levels of pollution. The amount of pollution emitted by each firm and the cost of the technologies are shown in the table. Technology 5 Emissions 10 tons 8 tons 6 tons 4 tons 2 tons Acme's Costs $750 $800 $1000 $1400 $2000 FirmCo's Costs $500 $700 $1200 $2200 $4000 Frank - Chapter to
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