Assume that a government is considering a new social program and may choose to include in this program any number of four progressively larger projects. The marginal cost and the marginal benefits of each of the four projects are given in the table. Refer to the above table and information. What is the total cost and total benefit of doing projects A, B, and C?
A) Total cost is $5 billion and total benefit is $7 billion
B) Total cost is $4 billion and total benefit is $7 billion
C) Total cost is $9 billion and total benefit is $12 billion
D) Total cost is $16 billion and total benefit is $20 billion

Question

Assume that a government is considering a new social program and may choose to include in this program any number of four progressively larger projects. The marginal cost and the marginal benefits of each of the four projects are given in the table.  Refer to the above table and information. What is the total cost and total benefit of doing projects A, B, and C?
A) Total cost is $5 billion and total benefit is $7 billion 
B) Total cost is $4 billion and total benefit is $7 billion 
C) Total cost is $9 billion and total benefit is $12 billion 
D) Total cost is $16 billion and total benefit is $20 billion

Quizplus · Accepted Answer

The Answer of Assume that a government is considering a new social program and may choose to include in this program any number of four progressively larger projects. The marginal cost and the marginal benefits of each of the four projects are given in the table.  Refer to the above table and information. What is the total cost and total benefit of doing projects A, B, and C?
A) Total cost is $5 billion and total benefit is $7 billion 
B) Total cost is $4 billion and total benefit is $7 billion 
C) Total cost is $9 billion and total benefit is $12 billion 
D) Total cost is $16 billion and total benefit is $20 billion

Assume That a Government Is Considering a New Social Program