Consider an Economy with Three Consumers, Each with a Marginal

question 4

Multiple Choice

Consider an economy with three consumers, each with a marginal benefit for a public good of MB = 10 - q.What is society's marginal benefit (MB_T) for the public good?

• A)MB_T = 10 - 3q
• B)MB_T =30- 3q
• C)MB_T =10 - 1/3.q
• D)MB_T =30 - 1/3q
• E)None of the above.

---

Definitions:

Check Clearing

The process through which banks settle transactions made by checks, transferring funds from the issuer's account to the recipient's account.

Receivables Level

The total amount of outstanding invoices a company has at any given time, indicating funds owed by customers.

Financial Managers

Professionals responsible for overseeing and managing a company's financial health, including planning, organizing, directing, and controlling financial activities.

Optimum Credit Policy

A business strategy that seeks to balance the benefits of extending credit to customers with the costs, aiming to maximize profitability.