The following data are for a series of increasingly extensive flood-control projects. Total Cost Per Year Total Benefit Per Year Plan A = Levees $ 10,000 $ 16,000 Plan B = Small Reservoir 24,000 36,000 Plan C = Medium Reservoir 44,000 52,000 Plan D = Large Reservoir 72,000 64,000 For Plan A marginal costs and marginal benefits are Multiple Choice $10,000 and $16,000, respectively. $20,000 and $32,000, respectively. $16,000 and $26,000, respectively. $20,000 and $16,000, respectively.
The following data are for a series of increasingly extensive flood-control projects. Total Cost Per Year Total Benefit Per Year Plan A = Levees $ 10,000 $ 16,000 Plan B = Small Reservoir 24,000 36,000 Plan C = Medium Reservoir 44,000 52,000 Plan D = Large Reservoir 72,000 64,000 For Plan A marginal costs and marginal benefits are Multiple Choice $10,000 and $16,000, respectively. $20,000 and $32,000, respectively. $16,000 and $26,000, respectively. $20,000 and $16,000, respectively.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The following data are for a series of increasingly extensive flood-control projects.
Total Cost Per Year | Total Benefit Per Year | |
---|---|---|
Plan A = Levees | $ 10,000 | $ 16,000 |
Plan B = Small Reservoir | 24,000 | 36,000 |
Plan C = Medium Reservoir | 44,000 | 52,000 |
Plan D = Large Reservoir | 72,000 | 64,000 |
For Plan A marginal costs and marginal benefits are
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