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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 a practical problem that is likely to face a government that is making decisions about cleaning up a landfill site such as this one?
1) The science and technology of land cleanup is constantly changing, making it difficult to accurately estimate marginal costs.
2) The benefits to human and animal health are difficult to measure, making it difficult to accurately estimate marginal benefits.
3) Governments cannot legally intervene to impose cleanup on privately owned land.

▸ 1 and 2 only

▸ 2 and 3 only

▸ 3 only

▸ 1 and 3 only

▸ 1, 2 and 3

Textbook

Microeconomics

Edition: 17^th

Author: Ragan

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