This Graph Shows the Marginal Cost and Marginal Benefit Associated

question 39

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

---

Definitions:

Managerial Accounting

The method of pinpointing, quantifying, examining, elucidating, and relaying financial data to managers to help achieve the objectives of an organization.

External Auditors

Independent experts who review the financial statements of a company to ensure accuracy and compliance with accounting standards.

Estimates

Approximations or educated guesses used in accounting to quantify amounts when precise measurements are unavailable or impractical.

Managerial Accounting

Managerial accounting involves the provision of financial information to management for decision-making, planning, and control purposes.