This Graph Shows the Marginal Cost and Marginal Benefit Associated

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 marginal cost of litter removal ______ due to ______.

A) decreases; gains from specialization
B) increases; the Coase Theorem
C) increases; increasing opportunity costs
D) decreases; diminishing returns to inputs