For a Public Good,which Statement(s)accurately Describe(s)the Marginal Social Benefit (MSB)

question 54

Multiple Choice

For a public good,which statement(s) accurately describe(s) the marginal social benefit (MSB) ? I.MSB equals the sum of the individual marginal benefits for all of the consumers of that unit.
II.MSB equals the sum of each consumer's willingness to pay for that unit.
III.MSB is greater than any individual marginal benefit.

• A)I only
• B)II only
• C)I and II only
• D)I,II,and III

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Definitions:

Current Liabilities

Obligations or debts that a company must pay within one year or within its normal operating cycle if longer.

Interest-Bearing Notes

Debt securities that pay interest to the holder at a fixed or variable rate until maturity.

Operating Cycle

The duration between the purchase of inventory and the collection of accounts receivable generated from sales.

Interest Expense

The cost incurred by an entity for borrowed funds, represented as an expense on the income statement, affecting net income.