Question 11 5 pts A filtration improvement has been proposed for the old water p

Question

Question 11 5 pts A filtration improvement has been proposed for the old water plant that serves the entire city. Water rates have been only 2 cents per gallon, but with the improvement, the rate would be 5 cents per gallon. OAre the additional benefits of cleaner water worth paying 3 more cents per gallon? O Can people afford paying more than twice as much for the same amount of water? O Is it worth paying 5 cents per gallon to have a city water system? O A rational debate for city residents at this time would be centered on which question?

Explanation / Answer

Answer:

cost benefit analysis is always done at the marginal level. so for extra margnal cost of 3 cents per gallon, are the marginal benefits worth 3 cents or not.

the answer is a

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