Question
Projects C and D have the following patterns of costs and benefits. Project C Project D Marginal Costs($) Marg. Benefits($) Marg. Costs Marg. Benefits 6,000
Projects C and D have the following patterns of costs and benefits.
Project C Project D Marginal Costs($) Marg. Benefits($) Marg. Costs Marg. Benefits 6,000 8,000 6,000 7,000 6,000 8,000 6,000 8,500 6,000 9,000 6,000 10,000 6,000 8,000 6,000 11,000
a.) Show the total cost, total benefit, net marginal benefit and net total benefit for each stage (i.e., funding level). b.) As in previous problems, no stage can be chosen without first choosing its predecessors. What should be funded if the agency has total funds of $6,000; $12,000; $18,000; $30,000?
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