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Please assist in the following: (12-18 sentences) Marginal benefit (marginal cost) of a unit of activity...

Please assist in the following: (12-18 sentences)

Marginal benefit (marginal cost) of a unit of activity can be measured by the slope of the line tangent to the total benefit (total cost) curve at that point of activity. It seems the tangent can be positive or negative or zero. Using the optimization theory analyze the following quotation "The optimal number of traffic deaths in the United States is zero." If necessary provide an example.

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Answer #1

Yes it is true because for optimisation MB=MC but in case of traffic deaths there is hardly any benefit and cost is quite high. Thus MC always lies above MB and any no. Of deaths is not profitable but is loss for society.

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