1. We are evaluating a litter removal policy with a marginal benefit function of MB=50-Q and a marginal cost function of MC=10+Q, where Q is the number of miles of highway cleaned.
   1. Find the optimal level of clean up in this market.
   2. Find the net benefits of cleaning up 10 miles. Does that pass a cost benefit test?
   3. Find the net benefits of cleaning up 25 miles. Does that pass a cost benefit test?

Answer rating: 100% (QA)

To find the optimal level of cleanup in this market we need to determine the level of cleanup where ... View the full answer