This Graph Shows the Marginal Cost and Marginal Benefit Associated

question 96

Multiple Choice

This graph shows the marginal cost and marginal benefit associated with roadside litter clean up. Assume that the marginal benefit curve and marginal cost curve each have their usual slope. Suppose the state highway department has picked up 15 bags of litter. Protesters have staged a demonstration demanding that the highway department return to pick up the remaining litter. From an economic efficiency perspective, the protesters have a ________ claim because ________.

• A)legitimate; litter generates a negative externality
• B)faulty; the additional resources needed to remove more litter could be better used elsewhere
• C)faulty; the government is not responsible for taking care of private property
• D)legitimate; the government has a responsibility to take action when private market incentives do not yield the socially optimal outcome

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Definitions:

Leadership Behaviors

The actions or conducts exhibited by individuals in leadership positions, influencing and guiding others toward achieving goals.

Achieve Consensus

The process of reaching agreement or shared understanding among a group.

Conflicts

Situations where incompatible goals, beliefs, or actions between two or more parties result in opposition or antagonistic interaction.

Derail

To cause a process or activity to deviate from its intended course, leading to disruption or failure.