Use the following to answer question:
-(Table: Street Cleanings)Use Table: Street Cleanings.Suppose that the marginal cost of each street cleaning is $18.Which statement is TRUE?
A)If the city decided to clean the streets only once per month,Peter would be willing to pay the entire cost of the cleaning.
B)If the city decided to clean the streets only once per month,Wendy would be willing to pay the entire cost of the cleaning.
C)If Wendy and Peter were the only people in society,the efficient number of street cleanings would be one per month.
D)If Wendy and Peter were the only people in society,the efficient number of street cleanings would be at least two per month.

Question

Use the following to answer question: 
-(Table: Street Cleanings)Use Table: Street Cleanings.Suppose that the marginal cost of each street cleaning is $18.Which statement is TRUE?
A)If the city decided to clean the streets only once per month,Peter would be willing to pay the entire cost of the cleaning. 
B)If the city decided to clean the streets only once per month,Wendy would be willing to pay the entire cost of the cleaning. 
C)If Wendy and Peter were the only people in society,the efficient number of street cleanings would be one per month. 
D)If Wendy and Peter were the only people in society,the efficient number of street cleanings would be at least two per month.

Quizplus · Accepted Answer

DThe efficient number of street cleanings would be determined by the point where the combined marginal benefit of Wendy and Peter equals the marginal cost of cleaning. Without the specific values from the table, we can't directly calculate or confirm the willingness of Peter or Wendy to pay for the cleaning or the exact efficient number of cleanings. However, if both statements C and D are considered true in the context of the question, it suggests that the combined marginal benefits of Wendy and Peter for at least one cleaning per month match or exceed the marginal cost, making one cleaning per month efficient, but also indicates that additional cleanings (at least two per month) could still provide a net benefit, aligning with the principles of economic efficiency.

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