Scenario: Private and External Benefits a Small Community Finds That

question 152

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) Look at the scenario Private and External Benefits.The community decides that given all the benefits of lawn upkeep, it is important to maintain the socially optimal number of lawn upkeep hours.In order to achieve this, the community will:

• A)require community lawn service of 45 hours.
• B)subsidize everyone who contributes to lawn upkeep with a payment of $15.
• C)implement a Pigouvian lawn tax of $65.
• D)provide no additional funds to lawn upkeep.

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Definitions:

Clock Class

A class provided by some programming languages or libraries that represents and manages dates, times, or timestamps, often used for time measurements or manipulations.

"Is A" Relationship

Describes the inheritant relationship in object-oriented programming where an instance of a subclass can also be considered an instance of the parent class.

Private Methods

Methods within a class that are accessible only by other methods of the same class.

Base Class

A class in object-oriented programming from which other classes, known as derived or child classes, inherit properties and methods.