The Cost of Producing an Additional Unit of a Good

question 342

Multiple Choice

The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is the

• A) marginal external cost.
• B) marginal private cost.
• C) marginal social cost.
• D) None of the above answers is correct.

---

Definitions:

Generally Accepted Accounting Principles

Generally Accepted Accounting Principles (GAAP) are a set of accounting standards and procedures used in the United States to ensure financial information is consistent and transparent.

Agricultural Commodities

Agricultural commodities include products derived from farming such as grains, livestock, and other food products often traded in financial markets.

Completed-transaction Method

A method of recognizing revenue only when all activities related to a transaction are completed.

GAAP

Generally Accepted Accounting Principles, a set of rules and guidelines that companies follow to ensure their financial statements are consistent and transparent.