Kip
Yale
Current debris in
60
80
pounds
Cost of reducing
$5
$2
debris by 10 pounds
Cost of reducing
$10
$4
debris by a second
10 pounds
Cost of reducing
$15
$6
debris by a third 10
pounds
Cost of reducing
$20
$8
debris by a fourth
10 pounds
Cost of reducing
$25
$10
debris by a fifth 10
pounds
Cost of reducing
$30
$15
debris by a sixth 10
pounds
If the government imposes a tax of $12 for every 10 pounds of waste, what will be the cost of waste for
Kip and Yale respectively? (Hint: companies will compare the cost of reducing debris to the tax for every 10
pounds and choose to reduce or pay tax accordingly)
1) $33; $44
2) $44; $22
3) $66; $88
4) $59; $63