Use the Following to Answer Questions

question 223

Multiple Choice

Use the following to answer questions:
Scenario: Alexander and Vanessa
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. The marginal social cost of engaging in such research is constant at $100.
-(Scenario: Alexander and Vanessa) Refer to the 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:

Positive Feedback

A process in which the effects of a small disturbance on a system include an increase in the magnitude of the perturbation.

Innate Talent

Natural abilities or proficiency in certain activities or fields present from birth or without the need for learning.

Secretly Hates

A condition where an individual harbors negative feelings or animosity towards someone or something, but does not openly express it.

Conclusion

The final part or summing up of an argument, research study, or discussion, often reflecting the results or the main points made.