The following data are for a series of increasingly extensive flood-control projects.
Total Cost Per Year Total Benefit Per Year
Plan A = Levees $10,000 $16,000
Plan B = Small Reservoir 24,000 36,000
Plan C = Medium Reservoir 44,000 52,000
Plan D = Large Reservoir 72,000 64,000
For Plan D marginal costs and marginal benefits are
$16,000 and $28,000, respectively.
$24,000 and $18,000, respectively.
$28,000 and $12,000, respectively.
$72,000 and $64,000, respectively.