3. The Department of Natural Resources is planning a program for protecting a wilderness area and has evaluated three options (labelled A, B, and C below) using cost-benefit analysis techniques. Some of the results are presented in the following table: Total benefits Total costs Benefit to cost ratio Marginal benefit (MB) Marginal cost (MC) MB to MC ratio A $68 957 $6 272 11.0 $5 192 $2 117 2.5 Option B $63 757 $4 156 15.3 $39 440 $500 78.8 C $24 325 $3 655 6.7 $24 325 $3 665 6.67 The monetary values in the table above are in millions of 2000 Canadian dollars, based on a 20 year life and discounted to present value using a discount rate of 3%. Option A is the strictest standard and Option C is the least strict. Option B is intermediate. The marginal costs and benefit figures refer to incremental costs/benefits involved in moving from no protection to Option C, from Option C to Option B and from Option B to Option A respectively. a. The department of Natural Resources has selected Option B. Is Option B the economically efficient choice? Explain your answer in detail. b. Under what circumstances would you recommend Option C?