This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope. The socially optimal number of bags of litter removed from the roadside each day is:
A)10.
B)15.
C)20.
D)30.

Question

This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope.  The socially optimal number of bags of litter removed from the roadside each day is:
A)10. 
B)15. 
C)20. 
D)30.

Quizplus · Accepted Answer

Litter should be removed up until the marginal benefit of litter removal equals marginal cost of litter removal.

This Graph Shows the Marginal Cost and Marginal Benefit Associated