Refer to Table 11-1. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?

A) 1 acre
B) 2 acres
C) 3 acres
D) 4 acres

Question

Sonya Wilson · Accepted Answer

Final Answer : C, Explanation :  To maximize total surplus, the park should be built up to the point where the marginal cost of building the park ($24 per acre) equals the marginal benefit. Without the specific values from Table 11-1, we typically look for the acreage where the marginal benefit (the value or willingness to pay for an additional acre) drops to $24 or just below it. Since the correct answer is provided as 3 acres, it implies that at 3 acres, the marginal benefit equals or just exceeds the marginal cost of $24, maximizing total surplus.

Refer to Table 11-1. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?

A) 1 acre
B) 2 acres
C) 3 acres
D) 4 acres

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Table 11-1. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?A) 1 acreB) 2 acresC) 3 acresD) 4 acres

Definitions

Learning Objectives

Learning Objectives

Related questions

Refer to Table 11-1. Suppose the cost to build the park is $24 per acre. How many acres should the park be to maximize total surplus from the park in Springfield?

A) 1 acre
B) 2 acres
C) 3 acres
D) 4 acres