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 10^th bag of litter exceed the marginal cost. B)the marginal cost of picking up the 10^th bag of litter exceed the marginal benefit. C)the marginal benefit of picking up the 20^th bag of litter exceed the marginal cost. D)the total benefit of having 30 bags removed is zero.

Question

Quizplus · Accepted Answer

At the point where the marginal cost curve intersects with the marginal benefit curve, the marginal benefit exceeds the marginal cost. This means that picking up that amount of litter (10^th bag) is worth more than the cost of doing so.

This Graph Shows the Marginal Cost and Marginal Benefit Associated