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 marginal cost of litter removal ________ due to ________.
A)decreases; gains from specialization
B)increases; the Coase Theorem
C)increases; increasing opportunity costs
D)decreases; diminishing returns to inputs

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 marginal cost of litter removal ________ due to ________.
A)decreases; gains from specialization 
B)increases; the Coase Theorem 
C)increases; increasing opportunity costs 
D)decreases; diminishing returns to inputs

Quizplus · Accepted Answer

The marginal cost of litter removal is increasing because of increasing opportunity costs.

This Graph Shows the Marginal Cost and Marginal Benefit Associated