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

question 66

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.At
Q₂, the marginal social benefit from the last unit of the public good:

• A)is equal to the marginal social cost.
• B)is equal to the sum of P₄ + P₃.
• C)is the optimal level of public good provision.
• D)does not benefit Nick very much.

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Definitions:

Goods Available

Refers to the total quantity or cost of goods that a company has ready for sale at any given time, including both its beginning inventory and the cost of goods purchased or manufactured during the period.

Inventory Estimate

An approximation of the value or quantity of inventory, used for accounting or planning purposes.

Retail Method

An accounting method to estimate ending inventory and cost of goods sold by using a proportional relationship between the retail value and cost of goods.

Estimated Ending Inventory

An approximation of the value of inventory a company has on hand at the end of an accounting period.