It Is Efficient to Produce an Additional Shirt If the

question 92

Multiple Choice

It is efficient to produce an additional shirt if the

• A)marginal social benefit from producing the shirt exceeds zero.
• B)marginal social benefit of producing the shirt equals zero.
• C)consumer surplus from the additional shirt exceeds its producer surplus.
• D)marginal social benefit from producing the shirt is greater than the marginal social cost of producing it.
• E)producer surplus from the additional shirt exceeds its consumer surplus.

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Definitions:

Ledger Accounts

Individual financial records within the general ledger, detailing transactions related to a specific account category.

Income Summary

An account in the accounting ledger that is used to summarize the revenues and expenses for a period, facilitating the transfer of net income or loss to retained earnings.

Closing Entries

Journal entries made at the end of an accounting period to transfer the balances in temporary accounts to permanent accounts, thereby preparing the company's books for the next period.

Net Income

The net income of a business once all costs, taxes, and deductions are taken from the overall revenue.