The National Environmental Protection Agency has established that 2.5% of the median household income is a reasonable amount to pay for safe drinking water. For a median household income of $45,000 per year, what would the health benefits have to be (in dollars per household per year) for the B/C ratio to be equal to 1.5?

What will be an ideal response?


C = 45,000(0.025)
= $1125

1.5 = B/1125
B = $1687.50

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