Suppose That the Government Is Trying to Decide Between Allocating

Multiple Choice

Suppose that the government is trying to decide between allocating its resources to build more dams or to build more freeways. In terms of forgone dams, as more freeways are constructed, the marginal benefit of additional freeways ________ and the marginal cost of additional freeways ________.

A) increases; increases
B) increases; decreases
C) decreases; increases
D) decreases; decreases