(Table: Total Cost and Total Individual Benefit) The table Total Cost and Total Individual Benefit refers to animal control for residents of a small town.If there are 1,000 residents, what is the marginal social benefit of the fourth animal control officer?
A)$10
B)$9,000
C)$10,000
D)$90,000

Question

Quizplus · Accepted Answer

To find the marginal social benefit of the fourth animal control officer, we need to calculate the total individual benefits of each officer and then subtract the total individual benefits of the first three officers from the total individual benefits of all four officers.

Total individual benefit of Officer 1 = $5,000
Total individual benefit of Officer 2 = $8,000
Total individual benefit of Officer 3 = $9,000
Total individual benefit of Officer 4 = $10,000

Total individual benefits of all four officers = $32,000

Total individual benefits of the first three officers = $22,000

Marginal social benefit of the fourth officer = $10,000

Therefore, the best choice is C, $10,000.

(Table: Total Cost and Total Individual Benefit) the Table Total