-Tom and Jerry Are the Only Members of Society

question 57

Multiple Choice

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defence satellites, a public good. If the marginal social cost of a satellite is $54, the efficient quantity of satellites is

• A) 0.
• B) 1.
• C) 2.
• D) 3.

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Definitions:

Cash Balance

The amount of money on hand or in bank accounts, immediately available to a business or individual.

Money Paid Out

The total amount of money a company or individual spends or disburses.

Average Collection Period

The average number of days it takes for a company to receive payment after a sale has been made on credit.

Accounts Receivables

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.