Assume the Social Marginal Benefit of Remote-Control Drone Flights Is

Multiple Choice

Assume the social marginal benefit of remote-control drone flights is given by SMB = 200 - 2Q and the marginal cost is given by MC = 3Q + 50. Assuming there are no external benefits and in a perfectly competitive environment, the equilibrium price per flight would be $_____ and the equilibrium number of flights would be _____.

A) 140; 30
B) 130; 40
C) 110; 20
D) 160; 20