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

As more and more litter is picked up, the opportunity cost of picking up each additional piece of litter increases. This is because the easiest and most accessible litter is picked up first, leaving more difficult and time-consuming litter to be picked up later. Therefore, the marginal cost of litter removal increases due to increasing opportunity costs.

This Graph Shows the Marginal Cost and Marginal Benefit Associated