As part of its proposal to win the 2012 Olympics,London developed a carbon offset plan to reduce the Games' impact on the environment.In 2011,the organisers decided to drop the plan to reduce emissions.We can conclude that
A)the organisers were not making a rational decision.
B)the marginal cost of reducing emissions exceeded the marginal benefit of reducing emissions.
C)it is difficult to calculate the cost of reducing emissions.
D)there were no incentives to reduce carbon emissions.
E)the organisers were ignoring a sunk cost.

Question

Quizplus · Accepted Answer

The decision to drop the carbon offset plan indicates that the marginal cost of reducing emissions exceeded the marginal benefit of reducing emissions. Otherwise, the organisers would have continued with the plan.

As Part of Its Proposal to Win the 2012 Olympics,London