Answer the Question on the Basis of the Following Information

question 72

Multiple Choice

Answer the question on the basis of the following information for four highway programs of increasing scope.All figures are in millions of dollars. $\begin{array}{c}\begin{array}{c}\underline{\text {Program}}\\\text {A}\\\text {B}\\\text {C}\\\text {D}\end{array}\begin{array}{c}\underline{\text {Total Cost}}\\\$ 2 \\6\\12\\20 \end{array}\begin{array}{c}\underline{\text {Total Benefit}}\\\$ 9 \\16 \\21 \\23\end{array}\end{array}$
The data indicate that:

• A) there is no highway program that is economically justifiable on the basis of cost-benefit analysis.
• B) the marginal cost and marginal benefit of Program A are $2 and $9 respectively.
• C) the marginal cost and marginal benefit of Program C are $12 and $21 respectively.
• D) the marginal cost and marginal benefit of Program A cannot be determined.

---

Definitions:

Indifference Curves

Graphical representations of different bundles of goods between which a consumer is indifferent, portraying preferences.

Indifference Curve

A graphical representation showing different bundles of goods between which a consumer is indifferent, reflecting their preferences and utility.

Total Utility

The overall satisfaction or benefit a consumer receives from consuming a particular quantity of a good or service.

Indifference Curve

A graphical representation showing combinations of goods or services among which a consumer is indifferent, meaning they have no preference for one combination over another, holding utility constant.