Use the Figure Below to Answer the Following Questions

question 61

Multiple Choice

Use the figure below to answer the following questions.
Figure 17.2.1
-Refer to Figure 17.2.1.Curve MB_A is Andrew's marginal benefit curve for a public good and curve MB_B is Betty's marginal benefit curve for the same public good.If Andrew and Betty are the only two consumers in the economy,which point would be on the economy's marginal social benefit curve?

• A)price of $20,quantity of 3
• B)price of $20,quantity of 4
• C)price of $10,quantity of 4
• D)price of $30,quantity of 0
• E)price of $60,quantity of 1

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Definitions:

Sales Return

Transactions that involve the returning of sold goods by customers, resulting in a reduction of revenue.

Credits

Credits are accounting entries that increase liabilities or equity accounts, or decrease asset or expense accounts.

Sales Returns And Allowances

Purchase returns and allowances from the seller’s perspective. See Purchase return and Purchase allowance, above.

Multiple-Step Income Statement

An income statement that shows several steps in determining net income.