The following data are for a series of increasingly extensive flood control projects:
Total cost Total benefit per year per year
Plan A levees $10,000 $16,000
Plan B small reservoir 24,000 36,000
Plan C medium reservoir 44,000 52,000
Plan D large reservoir 72,000 64,000
Refer to the data. For Plan D marginal costs and marginal benefits are:. a. $72,000 and $64,000 respectively. b. $28,000 and $12,000 respectively .c. $24,000 and $18,000 respectively. d. $16,000 and $28,000 respectively.

b. $28,000 and $12,000 respectively

Explanation:

The computation of the marginal cost and the marginal benefits for Plan D is shown below:

Marginal cost = Total cost for Plan D per year  - Total cost for Plan C per year

= $72,000 - $44,000

= $28,000

Marginal benefit = Total benefit for Plan D per year - Total benefit for Plan C per year

= $64,000 - $52,000

= $12,000

i mean they dont have to

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.