This graph shows the marginal costs and marginal benefits associated with roadside litter clean up.Assume that the marginal cost and marginal benefit curves slope in the usual directions. Refer to the information given above.From the graph,one can infer that: A)the benefits of picking up the 10^th bag of litter exceed the costs. B)the costs of picking up the 10^th bag exceed the benefits. C)the benefits of picking up the 20^th bag exceed the costs. D)the total benefit of having 30 bags removed is less than the total benefit of having 25 bags removed.

Question

Quizplus · Accepted Answer

The additional benefit of an activity is given by the downward sloping demand curve and the additional costs are given by the upward sloping supply curve.The benefit associated with the 10^th bag is 20 and the cost is 10.

This Graph Shows the Marginal Costs and Marginal Benefits Associated