Multiple Choice
(Table: Marginal Benefit from Additional Streetlights) Dave and Art live in a new housing development and would like to have streetlights installed.The table Marginal Benefit from Additional Streetlights shows Dave's and Art's individual marginal benefit of different numbers of streetlights.Suppose that the marginal cost of installing a streetlight is $6.What is the maximum that Art would be willing to pay to have one streetlight installed in the neighborhood?
A) $20
B) $15
C) $35
D) $5
Correct Answer:
Verified
Correct Answer:
Verified
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