The Marginal Benefit from Consumption of a Good as Viewed

question 22

Multiple Choice

The marginal benefit from consumption of a good as viewed by a private individual is called marginal

• A)internal benefit.
• B)external benefit.
• C)social benefit.
• D)external cost.
• E)private benefit.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Fixed Costs

Expenses that do not change with the level of production or sales activity, such as rent and salaries.

Traceable Fixed Expense

Fixed expenses that can be directly linked to a specific department, project, or segment within a company.

Net Operating Income

A calculation of a firm's profit, determined by deducting operational costs from the income gained through business activities.