A Removal or Depletion Tax on an Open-Access Resource Increases

question 147

Multiple Choice

A removal or depletion tax on an open-access resource increases the marginal private cost of using the resource by

• A)zero
• B)the amount of the tax
• C)the marginal product of the resource
• D)the average private cost of using the resource
• E)the average social cost of using the resource

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Definitions:

Standard

Accepted criteria or expected specifications established as a model for measuring quality, performance, or compliance.

Budgeted

The process of creating a plan for a company's spendings and incomes over a specific period, typically including projected revenues, expenses, and net income.

Direct Labor Time Variance

The difference between the actual hours worked and the standard hours allowed for the work done, multiplied by the standard labor rate.

Direct Labor

The cost of wages for employees who directly manufacture or produce goods.