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:

Scheduled Activities

Pre-planned tasks or events that are organized at specific times, often used in therapy, education, or personal management.

Shingles

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Psychosocial Stress

Stress caused by interpersonal relationships and interactions with one's social environment, potentially affecting mental and physical health significantly.