Question

Economists henry saffer of kean university, frank j. chaloupka of the university of illinois at chicago, and dhaval dave of bentley college estimated that the government must spend $4,170 on drug control to deter one person from using drugs and that the cost one drug user imposes on society is $897. based on this information alone, should the government spend the money on drug control?

Answer 1

I guess the correct answer is No.

No, since the marginal cost of drug control exceeds the marginal benefit, government should not spend $4,170 to deter one person from using drugs.