An Example of a Common Resource Is

question 134

Multiple Choice

An example of a common resource is:

• A)coffee sold in coffee shops.
• B)any type of public good.
• C)any private good that is monopolized.
• D)fishing in the ocean.

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Definitions:

Marginal Decision Rule

A principle stating that an action should be taken if and only if the marginal benefits exceed the marginal costs.

ATC

Average Total Cost, which represents the total cost per unit of output, calculated by dividing the total cost by the quantity of output produced.

MR

Stands for Marginal Revenue, which is the additional income earned from selling one more unit of a good or service.

Economic Profit

The difference between a firm's total revenues and its total costs, including both explicit costs and opportunity costs.