-Tom and Jerry Are the Only Members of Society

question 110

Multiple Choice

-Tom and Jerry are the only members of society. The table above shows their marginal benefits from defense satellites, a public good. If the marginal social cost of a satellite is $54, the efficient quantity of satellites is

• A) 0.
• B) 1.
• C) 2.
• D) 3.

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Definitions:

Share Exchange

A transaction in which the shares of one company are exchanged for the shares of another company, often as part of a merger or acquisition.

Intercorporate Investment

Investments made by one company into another, which can include purchasing stocks, bonds, or other forms of financial interests, to exert influence or control.

Subsidiary

A company controlled by another company, the parent company, through ownership of a majority of its voting stock, offering various degrees of operational independence.

Equity Method

An accounting technique used to record investments in associated companies where the investor has significant influence, recognizing its share of profits and losses.