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Suppose the small town of Falls Valley has a mosquito problem. After a bad summer, the town accountants explain that the marginal cost of providing one more treatment for mosquito control is $100,000. The town should provide the additional mosquito control only if the marginal:

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jepessoa

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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