Use the Following to Answer Questions

question 28

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.What is the socially optimal amount of scientific research for this economy?

• A) 60 units
• B) 300 units
• C) 100 units
• D) 200 units

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Definitions:

Ordinary Consumer

Refers to an average or typical consumer in the marketplace, often considered in legal contexts to assess product labeling and advertising.

Economically Feasible

Describes a project or action that is financially viable, with costs that do not exceed the anticipated benefits or returns.

Deceptive Advertising

A marketing practice that misleads consumers about a product or service's quality, safety, or performance.

Unjustified Claims

Assertions or allegations made without sufficient evidence or basis in fact.