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4. Economists measure cost as the full opportunity cost (op cost) associated with any given use of some set of resources.


resources to their next best alternative use (i.e. the benefits that must be forgone elsewhere if the resources in question a
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Answer #1


It makes no sense for additional unit of cleanup because the opportunity cost of cleaning up have now increased (because of additional benefits given up).

In simple words, it means it is efficient for the individual to go for the foregone alternative (and gain higher additional benefits) rather than go for cleaning up and make fewer benefits.

Since optimal and efficient decisions are always made at the margin, here in this case, one more additional unit of clean up involves lower benefits than opportunity cost (or benefits given up), it is optimal for the individual to stop the cleaning and go for the next best alternative and make himself better off.

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