Assume the Social Marginal Benefit of Remote-Control Drone Flights Is

question 21

Multiple Choice

Assume the social marginal benefit of remote-control drone flights is given by SMB = 200 - 2Q and the marginal cost is given by MC = 3Q + 50. Assuming there are no external benefits and in a perfectly competitive environment, the equilibrium price per flight would be $_____ and the equilibrium number of flights would be _____.

• A) 140; 30
• B) 130; 40
• C) 110; 20
• D) 160; 20

---

Definitions:

Insolvent Debtors

Individuals or entities that are unable to meet their financial obligations or repay their debts.

Debts

Money owed by one party to another under an agreement to repay borrowed funds or obtained resources.

Debtor

An individual or entity that owes money to another party.

Insolvent

A state where an individual or organization cannot meet its financial obligations as debts come due.