Answer the question on the basis of the following information for four highway programs of increasing scope.All figures are in millions of dollars. $\begin{array}{c}
\begin{array}{c}
\underline{\text {Program}}\
\text {A}\
\text {B}\
\text {C}\
\text {D}
\end{array}
\begin{array}{c}
\underline{\text {Total Cost}}\
\$ 2 \
6\
12\
20
\end{array}
\begin{array}{c}
\underline{\text {Total Benefit}}\
\$ 9 \
16 \
21 \
23
\end{array}
\end{array}$
The data indicate that:
A) there is no highway program that is economically justifiable on the basis of cost-benefit analysis.
B) the marginal cost and marginal benefit of Program A are $2 and $9 respectively.
C) the marginal cost and marginal benefit of Program C are $12 and $21 respectively.
D) the marginal cost and marginal benefit of Program A cannot be determined.

Question

Answer the question on the basis of the following information for four highway programs of increasing scope.All figures are in millions of dollars. $\begin{array}{c}
\begin{array}{c}
\underline{\text {Program}}\
\text {A}\
\text {B}\
\text {C}\
\text {D}
\end{array}
\begin{array}{c}
\underline{\text {Total Cost}}\
\$ 2 \
6\
12\
20 
\end{array}
\begin{array}{c}
\underline{\text {Total Benefit}}\
\$ 9 \
16 \
21 \
23
\end{array}
\end{array}$
 The data indicate that:
A) there is no highway program that is economically justifiable on the basis of cost-benefit analysis.
B) the marginal cost and marginal benefit of Program A are $2 and $9 respectively.
C) the marginal cost and marginal benefit of Program C are $12 and $21 respectively.
D) the marginal cost and marginal benefit of Program A cannot be determined.

Quizplus · Accepted Answer

Marginal cost and marginal benefit refer to the additional cost and benefit of moving from one program to the next. For Program A, since it is the first program, its total cost and total benefit can be considered its marginal cost and benefit, respectively, which are $2 million and $9 million.

Answer the Question on the Basis of the Following Information