If (PVB/PVC) for a given policy option equals 5.5, this means that
A) the policy option is not feasible
B) for every dollar of incremental costs incurred by society, there are $5.50 in realized incremental benefits
C) the policy option is feasible
D) both (b) and (c) are correct

Question

Quizplus · Accepted Answer

A PVB/PVC ratio of 5.5 indicates that for every dollar of incremental costs incurred by society, there are $5.50 in realized incremental benefits. This means that the policy option is feasible and has benefits that outweigh its costs. Therefore, both option (b) and (c) are correct.

If (PVB/PVC) for a Given Policy Option Equals 5