Use the following to answer question:
-(Table: Marginal Benefit from Additional Streetlights)Use Table: Marginal Benefit from Additional Streetlights.Suppose that the marginal cost of installing a streetlight is $6.What is the maximum that Art would be willing to pay to have one streetlight installed in the neighborhood?
A)$20
B)$15
C)$35
D)$5

Question

Use the following to answer question: 
-(Table: Marginal Benefit from Additional Streetlights)Use Table: Marginal Benefit from Additional Streetlights.Suppose that the marginal cost of installing a streetlight is $6.What is the maximum that Art would be willing to pay to have one streetlight installed in the neighborhood?
A)$20 
B)$15 
C)$35 
D)$5

Quizplus · Accepted Answer

Art's maximum willingness to pay for one streetlight is represented by the marginal benefit he receives from the first streetlight, which is $20.

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