Assume that a government is considering a new social program and may choose to include in this program any number of four progressively larger projects.The marginal cost and the marginal benefit of each of the four projects is provided in the table. Refer to the above table and information.What is the net benefit of undertaking all four projects?
A) $2 billion
B) $3 billion
C) $4 billion
D) $5 billion To calculate net benefit,one must compare total costs with total benefits.Total cost of all four projects is $16B and total benefit is $20B,for a net benefit of $4B.

Question

Assume that a government is considering a new social program and may choose to include in this program any number of four progressively larger projects.The marginal cost and the marginal benefit of each of the four projects is provided in the table.  Refer to the above table and information.What is the net benefit of undertaking all four projects?
A) $2 billion 
B) $3 billion 
C) $4 billion 
D) $5 billion To calculate net benefit,one must compare total costs with total benefits.Total cost of all four projects is $16B and total benefit is $20B,for a net benefit of $4B.

Quizplus · Accepted Answer

The Answer of Assume that a government is considering a new social program and may choose to include in this program any number of four progressively larger projects.The marginal cost and the marginal benefit of each of the four projects is provided in the table.  Refer to the above table and information.What is the net benefit of undertaking all four projects?
A) $2 billion 
B) $3 billion 
C) $4 billion 
D) $5 billion To calculate net benefit,one must compare total costs with total benefits.Total cost of all four projects is $16B and total benefit is $20B,for a net benefit of $4B.

Assume That a Government Is Considering a New Social Program