The table presents a firm with four alternative production methods. Each method involves a different cost and produces a different level of pollution. The government rules that firms which pollute have to purchase pollution permits costing $90 each. Each permit authorises the firm to release 1 tonne of pollution. Pollution cannot be released without a permit. Which production method results in the lowest total cost?
- Acost $320, pollution 3 tonnes
- Bcost $380, pollution 2 tonnes
- Ccost $480, pollution 1 tonne
- Dcost $700, pollution 0 tonnes