Consider an Economy with Two Consumers, Each with a Marginal

question 8

Multiple Choice

Consider an economy with two consumers, each with a marginal benefit for a public good of MB = 20 - 1/2q.What is society's marginal benefit (MB_T) for the public good?

• A)MB_T = 10 - q
• B)MB_T =40- 2q
• C)MB_T =40 - q
• D)MB_T =20 - 1/2q
• E)None of the above.

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Definitions:

Cash Dividends

Payments made by a corporation to its shareholder members, distributing a portion of the company's earnings in cash.

Operating Activities

Transactions and events that affect the net income of a business, reflected in its cash flow from operations and including everyday functions like selling products and paying wages.

Comparative Balance Sheet

A financial statement that presents a company's financial position at two or more points in time, allowing for comparison.

Net Cash

The amount of cash available after accounting for all cash receipts and payments.