Question
Projects R and S show the following patterns of costs and benefits. PROJECT R PROJECT S Total Costs Total Benefit Total Cost Total Benefit $
Projects R and S show the following patterns of costs and benefits. PROJECT R PROJECT S Total Costs Total Benefit Total Cost Total Benefit $ 5,000 7,000 $5,000 9,000 10,000 18,000 10,000 21,000 15,000 41,000 15,000 40,000 20,000 58,000 20,000 60,000 a.) Show the marginal cost, marginal benefit, net marginal benefit and net total benefit for each funding level. b.) As in problem #1, available money can be split in $5,000 increments in any way between R and S. What should be funded if the agency has total funds of $10,000; $15,000; $20,000? Why?
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