Use the Following to Answer Questions

question 160

Multiple Choice

Use the following to answer questions :
Scenario: Private and External Benefits
A small community finds that tidy lawns and neighbourhoods provide both private and external benefits.They determine that the marginal private benefit (MPB) of lawns can be represented by the equation MPB = 50 - 0.5Q,where Q is the number of hours spent on keeping lawns tidy.The marginal private cost (MPC) of such lawn upkeep is represented by the equation MPC = 0.5Q,where Q is again the number of hours engaged in lawn upkeep.
-(Scenario: Private and External Benefits) Use Scenario: Private and External Benefits.The community estimates the marginal benefit to external parties from lawn upkeep to be $15.Given this information,what is the socially optimal amount of lawn upkeep for this community?

• A) 0 hours
• B) 45 hours
• C) 50 hours
• D) 65 hours

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Definitions:

Negotiable Instrument

A document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the payer named on the document.

Rights

Entitlements or permissions, usually legal or moral, that individuals or groups have to certain actions or claims, without interference from others.

Promissory Note

is a written, signed document in which one party promises to pay another party a specific sum of money at a future date or on demand.

Personal Defense

Refers to the actions and strategies employed by an individual to protect themselves from harm or danger.