The following data are for a series of increasingly extensive flood-control projects.9.Total Benefit PerTotal Cost Per YearYearPlan A = Levees$10,000$ 16,00036,00052,000Plan B =Small Reservoir24,000Plan C =Medium Reservoir44,000eBookPlan D = Large Reservoir72,00064,000For Plan B marginal costs and marginal benefits areMultiple Choice(O $24,000 and $36,000, respectively.$14,000 and $20,000, respectively.$12,000 and $6,000, respectively.$20,000 and $16,000, respectively.

Marginal benefits are the most extreme sum a buyer will pay for an extra decent or administration.…

Total Benefit Per Total Cost Per Year Year Plan A Levees $10,000 $ 16,000 %3D 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 B marginal costs and marginal benefits are

Total Benefit Per Total Cost Per Year Year Plan A Levees $10,000 $ 16,000 %3D 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 B marginal costs and marginal benefits are

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter17: Long-term Investment Analysis

Section: Chapter Questions

Problem 2.4CE

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D The following data are for a series of increasingly extensive flood-control projects; Total Cost Per Year Total Benefit Per Year $10,000 $16,000 $24,000 $36,000 $44,000 $52,000 $72,000 $64,000 Options Plan A = Levees Plan B Small Reservoir Plan C = Medium Reservoir Plan D= Large Reservoir On the basis of cost-benefit analysis, government should undertake: Plan A. Plan B. Plan C. Plan D.
Public investment projects should provide benefits for the public's greater good that exceed the_ O present worth O annual worth O costs O payback period of providing those benefits.
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