If more resources are spent on slums than the richer areas, why are the slums not proportionately cleaner? My contention is that the more well off people attach greater premium to cleanliness in their neighbourhood, than the less well off. A little bit of economics will help clarify it. The Marginal Social Benefit (MSB) to an individual or a community from any activity, is the benefit accrued to them due to an additional unit of that activity. Similarly, the Marginal Social Cost (MSC) to an individual or community from any activity, is the extra cost inflicted on them due to an additional unit of activity.
Gulzar explains. Interesting.
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