For Questions Using the Following Marginal Benefit and Marginal

question 59

Multiple Choice

For questions using the following marginal benefit and marginal cost functions for activity A:
MB = 100 - 5A
MC = 20 + 3A
-The fifth unit of activity A will

• A) increase net benefits by 75.
• B) reduce net benefits by 35.
• C) increase net benefits by 40.
• D) decrease net benefits by 40.
• E) reduce net benefits by 75.

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Definitions:

Fresh Water

Water that contains minimal amounts of dissolved salts, especially found in lakes, rivers, and streams, as opposed to salt water.

Groundwater

Soil water and water in aquifers.

Aquifers

Underground layers of water-bearing permeable rock, rock fractures, or unconsolidated materials from which groundwater can be extracted using a water well.

Lakes

Large bodies of water surrounded by land, freshwater or sometimes saline, that are inland and not part of the ocean.