Use the following to answer questions:
-(Table: Street Cleanings) Look at the table Street Cleanings. Suppose that the marginal cost of each street cleaning is $18. Which statement is TRUE?
A) If the city decided to clean the streets only once per month, Peter would be willing to pay the entire cost of the cleaning.
B) If the city decided to clean the streets only once per month, Wendy would be willing to pay the entire cost of the cleaning.
C) If Wendy and Peter were the only people in society, the efficient number of street cleanings would be one per month.
D) If Wendy and Peter were the only people in society, the efficient number of street cleanings would be at least two per month.

Question

Use the following to answer questions: 
-(Table: Street Cleanings) Look at the table Street Cleanings. Suppose that the marginal cost of each street cleaning is $18. Which statement is TRUE?
A) If the city decided to clean the streets only once per month, Peter would be willing to pay the entire cost of the cleaning. 
B) If the city decided to clean the streets only once per month, Wendy would be willing to pay the entire cost of the cleaning. 
C) If Wendy and Peter were the only people in society, the efficient number of street cleanings would be one per month. 
D) If Wendy and Peter were the only people in society, the efficient number of street cleanings would be at least two per month.

Quizplus · Accepted Answer

If Wendy and Peter were the only people in society, the efficient number of street cleanings would be one per month because the marginal cost of each street cleaning is $18, and Peter is willing to pay $20 for one street cleaning per month.

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