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If the Government Estimates That the Marginal Cost of Building

Question 157

Multiple Choice

If the government estimates that the marginal cost of building a bridge is $100 million,while the marginal benefit is $150 million,the marginal principle dictates that the government should


A) build the bridge.
B) never build the bridge.
C) wait until the marginal cost of building the bridge rises to above $150 million before building the bridge.
D) wait until the marginal benefit of building the bridge drops to below $100 million before building the bridge.

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