This Graph Shows the Marginal Cost and Marginal Benefit Associated

question 13

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. The socially optimal number of bags of litter removed from the roadside each day is:

• A)10.
• B)15.
• C)20.
• D)30.

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Definitions:

Sample Size

The number of observations or data points collected in a study or used in a statistical analysis.

Interval Estimate

An estimate of a population parameter that provides a range of values, defined by lower and upper bounds, that is likely to contain the parameter of interest.

Z Value

A statistic indicating how many standard deviations an element is from the mean in a normal distribution.

Population Parameter

A numerical value that represents a characteristic of an entire population, such as its mean or standard deviation.