Scenario: Ben and Nick Two Individuals, Ben and Nick, Are

question 98

Multiple Choice

Scenario: Ben and Nick Two individuals, Ben and Nick, are the only members of a hypothetical community.They have revealed the marginal private benefits they each receive from a public good whose marginal social benefit is known.In addition, the marginal social cost (MSC) of the public good is known and is constant. (Scenario: Ben and Nick) Refer to the information and figure in the scenario Ben and Nick.Q4:

• A)is the socially optimal level of public good provision.
• B)is equal to P₄ + P₃ in marginal social benefits.
• C)represents an amount at which the MSB is greater than the MSC.
• D)will not be produced, since neither Ben nor Nick finds benefit in it at this level.

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Definitions:

Apparent Authority

A situation where a reasonably prudent person would understand that an agent had the authority to act, even if the agent didn't have actual authority.

Purported Principal

An entity or individual represented as having granted authority to another, whether or not such authority actually exists.

Disclosed Principal

A principal whose identity is known by the third parties with whom the agent enters into contracts on behalf of the principal.

Mutually Agreed

A condition or circumstance where all parties involved have consented to the terms or decisions proposed, often used in contracts or negotiations.