If it costs motorists $1 to reduce carbon monoxide emissions from 10 pounds to 9 pounds and $3 to reduce them from 9 pounds to 8 pounds, the marginal benefit of the 9th pound of carbon monoxide is:

Question

Quizplus · Accepted Answer

The marginal benefit is equal to the cost of the next unit of reduction, which is $3 to reduce emissions from 9 to 8 pounds. Therefore, the answer is (B) $3.

If It Costs Motorists $1 to Reduce Carbon Monoxide Emissions