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Fynjy0 [20]
3 years ago
14

Suppose the small town of Falls Valley has a mosquito problem. After a bad summer, the town accountants explain that the margina

l cost of providing one more treatment for mosquito control is $100,000. The town should provide the additional mosquito control only if the marginal:
Business
1 answer:
Tresset [83]3 years ago
7 0

Answer:

The town should provide the additional mosquito control only if the marginal benefit generated for the residents of Falls Valley is equal to or greater than  $100,000.

Explanation:

The town must use the same logic as any business, they only increase their activities when MR ≥ MC, in this case the marginal revenue equals the benefits generated by the mosquito treatment.

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​

Step 2 of 2. Journey record. Image attached.

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