Marginal External Costs Are

question 49

Multiple Choice

Marginal external costs are

• A)additional unpriced costs imposed on society by producing one more unit of a good
• B)the cost of damaged goods
• C)the additional cost of imported goods
• D)the total cost to society of producing a good
• E)the marginal cost divided by the marginal revenue

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Definitions:

Direct Materials

The raw materials that can be directly attributed to the production of specific goods or services.

Incremental Revenues

The additional income generated from a new product or service or as a result of making changes to an existing operation.

Fixed Overhead

Regular, predictable costs that do not vary with the level of production or sales, such as rent, salaries, and insurance.

Variable Overhead

Costs that vary directly with the level of production or business activity.