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. Picking up the 20th bag of litter would:
A)be socially efficient.
B)increase total economic surplus.
C)create deadweight loss.
D)be socially efficient, but would not be consistent with the actions of self-interested individuals.

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.  Picking up the 20th bag of litter would:
A)be socially efficient. 
B)increase total economic surplus. 
C)create deadweight loss. 
D)be socially efficient, but would not be consistent with the actions of self-interested individuals.

Quizplus · Accepted Answer

The marginal benefit of removing the 20th bag is less than the marginal cost of removing the 20th bag.

This Graph Shows the Marginal Cost and Marginal Benefit Associated