Scenario: Private and External Benefits a Small Community Finds That

question 214

Multiple Choice

Scenario: Private and External Benefits A small community finds that tidy lawns and neighborhoods provide both private and external benefits.They determine that the marginal private benefit (MPB) of lawns can be represented by the following equation: MPB = 50 - 0.5Q, where Q is the number of hours spent on keeping lawns tidy.The marginal private cost (MPC) of such lawn upkeep is represented by the following equation: MPC = 0.5Q, where Q is again the number of hours engaged in lawn upkeep.
(Scenario: Private and External Benefits) Based on the information provided in the scenario Private and External Benefits, how many hours of lawn upkeep will occur in this community, and what will be the marginal private benefit of such upkeep?

• A)50 hours; $50
• B)45 hours; $20
• C)50 hours; $25
• D)100 hours; $50

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Definitions:

Feng Shui

An ancient Chinese practice that involves arranging the pieces in living spaces to create balance with the natural world.

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The use of red highlights or details in a visual design to attract attention or evoke emotions.

Repetition

The act of doing or saying something multiple times for the purpose of learning, memorization, or emphasis.

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The process by which people filter and focus on specific stimuli from their environment while ignoring others.