The following figure depicts consumer willingness to pay for every tree to be sa

Question

The following figure depicts consumer willingness to pay for every tree to be saved in a city and the marginal cost to save each tree.

a. If consumers are faced with an option of either saving 40 trees or no trees, what should their choice be? Explain.

b. If consumers are allowed to save any number of trees they desire, how would you change your answer above? Explain.

The following figure depicts consumer willingness to pay for every tree to be saved in a city and the marginal cost to save each tree. a. If consumers are faced with an option of either saving 40 trees or no trees, what should their choice be? Explain. b. If consumers are allowed to save any number of trees they desire, how would you change your answer above? Explain.

Explanation / Answer

since the cost for saving 40 tress is 5000 which is more than marginal cost .I think i will not save tree as cost of saving no tree will be zero since i am allowed to save any no of tree i will go for the no of tree below the marginal cost

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