Scenario: Private and External Benefits A small community finds that tidy lawns and neighborhoods provide both private and external benefits.They determine that the marginal private benefit (MPB) of lawns can be represented by the following 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 following equation: MPC = 0.5Q, where Q is again the number of hours engaged in lawn upkeep.
(Scenario: Private and External Benefits) Look at the scenario Private and External Benefits.The community estimates the marginal social benefit 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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The Answer of Scenario: Private and External Benefits A small community finds that tidy lawns and neighborhoods provide both private and external benefits.They determine that the marginal private benefit (MPB) of lawns can be represented by the following 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 following equation: MPC = 0.5Q, where Q is again the number of hours engaged in lawn upkeep.
(Scenario: Private and External Benefits) Look at the scenario Private and External Benefits.The community estimates the marginal social benefit 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

Scenario: Private and External Benefits a Small Community Finds That