A Government Is Considering Undertaking a Construction Project of an Increasing

A government is considering undertaking a construction project of an increasing scale (ranging from 1, 2, 3, to 4) . The estimated marginal costs and marginal benefits of each successive scale of the project are given in the table below. What is the total cost and total benefit of the scale-3 project?

A) Total cost is $18 million, and total benefit is $19 million.
B) Total cost is $24 million, and total benefit is $27 million.
C) Total cost is $37 million, and total benefit is $41 million.
D) Total cost is $65 million, and total benefit is $66 million.

Correct Answer:

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