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. From the graph, one can infer that:
A)the marginal benefit of picking up the 10th bag of litter exceed the marginal cost.
B)the marginal cost of picking up the 10th bag of litter exceed the marginal benefit.
C)the marginal benefit of picking up the 20th bag of litter exceed the marginal cost.
D)the total benefit of having 30 bags removed is zero.

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.  From the graph, one can infer that:
A)the marginal benefit of picking up the 10th bag of litter exceed the marginal cost. 
B)the marginal cost of picking up the 10th bag of litter exceed the marginal benefit. 
C)the marginal benefit of picking up the 20th bag of litter exceed the marginal cost. 
D)the total benefit of having 30 bags removed is zero.

Quizplus · Accepted Answer

The additional benefit of an activity is given by the downward sloping marginal benefit curve and the additional costs are given by the upward sloping marginal cost curve. The benefit associated with the 10th bag is 20 and the cost is 10.

This Graph Shows the Marginal Cost and Marginal Benefit Associated