This Graph Shows the Marginal Cost and Marginal Benefit Associated

question 144

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. From the graph, one can infer that:

• A)the marginal benefit of picking up the 10th bag of litter exceed the marginal cost.
• B)the marginal cost of picking up the 10th bag of litter exceed the marginal benefit.
• C)the marginal benefit of picking up the 20th bag of litter exceed the marginal cost.
• D)the total benefit of having 30 bags removed is zero.

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Definitions:

Contextual Approaches

refer to methods that consider the surrounding circumstances, environment, or conditions in which a phenomenon occurs or is analyzed.

Co-Creation

A collaborative process where businesses and consumers work together to create value, products, or services, integrating customer input and engagement.

Practical Insights

Knowledge gained from practical experience that can be applied to make informed decisions.

Nudging

A concept in behavioral economics that involves subtly guiding choices and behaviors through indirect suggestions and positive reinforcements without restricting freedom of choice.