Each citizen in a small town suffers 5 units of irritation for each bushel of leaves burned in the town. The charge for hauling a bushel of leaves to the land fill is a fee equal to 20 units of irritation. There are 25 people in the town, each of whom minimizes personal irritation and has 10 bushels of leaves. What is the marginal cost to society when a bushel of leaves is burned?

What will be an ideal response?


Since 5 units of irritation are felt by 25 different people the total cost per bushel for burning is 125 units of irritation.

Economics

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Economics