Question

BigManufacture Inc. currently releases lead in to the local waterways at a concentration of 5 parts per billion. The government regulations sets a limit to the lead pollution at 2 parts per billion accompanied by a $30,000 fine per year for each part per billion beyond the 2 part limit. What is BigManufacture Inc. likely to do

Answer 1

Based on the calculations of total costs for each option, BigManufacture Inc. is likely to D. Reduce lead pollution by 1 part per billion.

What is the best pollution strategy?

There are many strategies to reduce pollution.

Deciding on a pollution reduction strategy depends on the total costs involved, as illustrated below.

Data and Calculations:

Total costs:

                                        Option A      Option B       Option C     Option D

Pollution Reduction cost  $0              $110,000       $60,000      $25,000

Fine payment                  $90,000       $0                $30,000      $60,000

Total costs                     $90,000      $110,000      $90,000      $85,000    

Question Completion:

Cost Implication of Lead Pollution Reduction

Reduction of Lead         Cost

By 1 part per billion      $25,000/year

By 2 parts per billion   $60,000/year

By 3 parts per billion  $110,000/year

Answer Options:

A. Reduce lead pollution by O part per billion.

B. Reduce lead pollution by 3 parts per billion.

C. Reduce lead pollution by 2 parts per billion.

D. Reduce lead pollution by 1 part per billion.

Thus, based on the calculations of total costs for each option, BigManufacture Inc. is likely to D. Reduce lead pollution by 1 part per billion.

Learn more about pollution reduction strategies at https://brainly.com/question/20131308