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The table below shows the marginal costs and marginal benefits associated with cleaning up a ...

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The table below shows the marginal costs and marginal benefits associated with cleaning up a ...

The table below shows the marginal costs and marginal benefits associated with cleaning up a polluted landfill site.

Cleanliness of Land (%)	Marginal Cost ($ millions)	Marginal Benefit ($ millions)
0	1.25	12.0
20	1.5	9.0
40	2.0	7.0
60	3.0	5.5
80	4.5	4.5
100	20.0	4.0

TABLE 17-2

Refer to Table 17-2. What is the maximum total net benefit to society that can be attained by cleaning this landfill site?

▸ $41.25 million

▸ $0

▸ $4.5 million

▸ $25.25 million

▸ It is not possible to determine without knowing the precise MB and MC curves.

Textbook

Microeconomics

Edition: 17^th

Author: Ragan

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