Use the Following to Answer Questions

question 60

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) Given the information in the scenario Alexander and Vanessa, what is the socially optimal amount of scientific research for this economy?

• A) 60
• B) 300
• C) 100
• D) 200

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Definitions:

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A philosophical theory focusing on free will, choice, and personal responsibility, emphasizing the individual's creation of meaning in an inherently meaningless world.

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