A Government Is Considering Undertaking a Construction Project of an Increasing

question 196

Multiple Choice

A government is considering undertaking a construction project of an increasing scale (ranging from 1, 2, 3, to 4) . The estimated marginal costs and marginal bene?ts of each successive scale of the project are given in the
Table below.
$$\begin{array} { | c | c | c | } \hline \text { Project } & \begin{array} { c } \text { Marginal Cost } \\\text { (in millions) }\end{array} & \begin{array} { c } \text { Marginal Benefit } \\\text { (in millions) }\end{array} \\\hline 1 & \$ 8 & \$ 11 \\\hline 2 & 11 & 13 \\\hline 3 & 18 & 17 \\\hline 4 & 28 & 23 \\\hline\end{array}$$ What is the net bene?t of project scale 2?

• A) $2 million
• B) $3 million
• C) $4 million
• D) $5 million

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Definitions:

Cones

Photoreceptor cells in the retina of the eye that are responsible for color vision and function best in relatively bright light.

Fovea

Refers to a small depression in the retina of the eye where visual acuity is highest, responsible for sharp central vision.

Retina

The thin layer of tissue that lines the back of the eye on the inside, responsible for receiving light and converting it into neural signals that are sent to the brain.

Embodied Cognition

The belief that the mind's operations are closely tied to how the body interacts with its environment.