If Motorists Gain $8 in Benefits When Carbon Monoxide Emissions

question 121

Multiple Choice

If motorists gain $8 in benefits when carbon monoxide emissions are reduced from 10 pounds to 9 pounds and $5 when they are reduced from 9 pounds to 8 pounds, the marginal cost of the 10th pound of carbon monoxide is:

• A) $3.
• B) $5.
• C) $8.
• D) $9.

---

Definitions:

Marginal Revenue

The extra income a company earns by selling an additional unit of a product or service.

Marginal Cost

The extra expense related to the production of an additional unit of a good or service.

Marginal Revenue

The additional income produced from the sale of one more unit of a product or service.

Marginal Cost

The expense incurred from making an extra unit of a product or service.