Use the Following to Answer Questions

question 63

Multiple Choice

Use the following to answer questions :
Scenario: Alexander and Vanessa
Alexander and Vanessa benefit from scientific research.Alexander's marginal private benefit from such research is given by the equation MPB = 200 - Q,where Q refers to the amount of research undertaken and MPB captures the marginal private benefit Alexander gets from different marginal quantities.Meanwhile,Vanessa's marginal private benefit from such research is given by the equation MPB = 100 - Q.The marginal social cost of such research is constant at $100.
-(Scenario: Alexander and Vanessa) Use Scenario: Alexander and Vanessa.If Alexander and Vanessa are the only two individuals in a society,which equation CORRECTLY represents the marginal social benefit (MSB) of scientific research?

• A) MSB = 300 - 2Q
• B) MSB = 100 - Q
• C) MSB = 200 - Q
• D) MSB = 100

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Definitions:

Normal Balance

The side (debit or credit) on which increases to the account are recorded, depending on the type of account.

Financial Statement(s)

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Normal Balance

The side of an account (debit or credit) where increases in the account are recorded.

Financial Statement(s)

Documents that provide an overview of a business's financial condition, including balance sheet, income statement, and cash flow statement.