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.From the graph, one can infer that:

A. the marginal cost of picking up the 10th bag of litter exceed the marginal benefit.
B. the marginal benefit of picking up the 20th bag of litter exceed the marginal cost.
C. the total benefit of having 30 bags removed is zero.
D. the marginal benefit of picking up the 10th bag of litter exceed the marginal cost.


Answer: D

Economics

You might also like to view...

If a household’s income declines, then its budget line is

A. unaffected. B. going to be steeper. C. shift parallel, closer to the origin. D. shift parallel, further away from the origin. E. become more concave toward the origin.

Economics

Suppose two neighbors share a park. One neighbor, Al, leaves trash in the park. This bothers the other neighbor, Bert. According to Coase's Theorem, one way to alleviate the externality is that

A) Al is fined by the government. B) Al has the right to leave trash and Bert cannot do anything about it. C) Bert has the right to a clean park and Al cannot leave trash. D) Either Al or Bert owns the park.

Economics

Voluntary restraint agreements:

A. are prohibited by NAFTA. B. hurt consumers in both the short run and the long run. C. hurt workers in both the short run and the long run. D. do not affect imports in both the short run and the long run.

Economics

Corporate takeovers and the financial defenses erected against them have resulted in each of the following except

A. diverting tens of billions of dollars a year from investment in plant and equipment. B. putting billions of additional dollars into research and development. C. forcing corporate officers to focus on short-term profitability rather than on long-term growth. D. placing corporations in very precarious financial straits by taking on mountains of debt.

Economics