(Table: Street Cleanings) Peter and Wendy Both Benefit from Having

question 211

Multiple Choice

(Table: Street Cleanings) Peter and Wendy both benefit from having cleaner streets.The table Street Cleanings shows the relationship between the number of street cleanings per month and the total benefit they get.Increasing the number of street cleanings per month from ________ would yield a marginal social benefit (for Peter and Wendy together) equal to $12.

• A)1 to 2
• B)2 to 3
• C)3 to 4
• D)4 to 5

---

Definitions:

Incidentals

Minor or secondary expenses or costs that may occur in addition to the primary expenses.

Cash Burn

The rate at which a company spends its capital to finance overhead before generating positive cash flow from operations.

Cash Equivalents

Short-term, highly liquid investments with maturities of three months or less at the time of acquisition, easily convertible to known amounts of cash.

Monthly Cash Expenses

The total amount of money spent by a business in cash within a month for operational and administrative purposes.