Scenario: Alexander and Vanessa Two Individuals, Alexander and Vanessa, Benefit

question 40

Multiple Choice

Scenario: Alexander and Vanessa Two individuals, Alexander and Vanessa, benefit from scientific research.Alexander's marginal private benefit from such research is given by the equation P = 200 - Q, where Q refers to the amount of research undertaken and P is the price Alexander is willing to pay for such research.Vanessa's marginal private benefit from such research is given by the equation P = 100 - Q.Suppose the marginal social cost of engaging in such research is constant at $100.
(Scenario: Alexander and Vanessa) Refer to scenario Alexander and Vanessa.If Alexander and Vanessa are the only two individuals in a society, which of the following equations correctly represents the marginal social benefit (MSB) of scientific research?

• A)MSB = 300 - 2Q.
• B)MSB = 100 - Q.C.MSB = 200 - Q.D.MSB = 100.

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Definitions:

Teller Amendment

An amendment to a joint resolution of the United States Congress, enacted in 1898, stipulating that the United States could not annex Cuba but only leave "control of the island to its people."

Spanish-American War

A conflict between Spain and the United States in 1898, resulting from U.S. intervention in the Cuban War of Independence, leading to the U.S. acquiring territories in the western Pacific and Latin America.

Cuba

An island nation in the Caribbean known for its significant cultural heritage, historical socio-political events, and current communist government.