Suppose, that your community has identified five different areas of town that are polluted and has assigned clean-up projects to each area: projects A through E in the table below. For simplicity, let's assume that the marginal cost of each project is $75,000. The marginal benefit to the community, however, is different for each and listed in the table below. If your city has enough money to pay for all five projects, which areas should it clean up?ProjectMarginal BenefitA$150,000B125,000C100,000D75,000E50,000
A. A, B, C and D
B. C, D, and E
C. D and E
D. E
Answer: A
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