The data table presents a firm with four alternative production methods for producing its intended output. Each method involves a different cost and results in a different level of pollution. Government regulations require polluting firms to purchase pollution permits costing $90 each. Each permit gives the firm permission to release 1 tonne of pollution. Pollution may not be emitted unless a permit has been bought. Which method of production has the lowest total cost?
- AMethod A: cost of production $320, pollution caused 3 tonnes
- BMethod B: cost of production $380, pollution caused 2 tonnes
- CMethod C: cost of production $480, pollution caused 1 tonne
- DMethod D: cost of production $700, pollution caused 0 tonnes