Which of the Following Produces External Benefits

question 34

Multiple Choice

Which of the following produces external benefits?

• A)Garbage dumped in the Atlantic Ocean.
• B)The inoculation of college students against the flu.
• C)Passive smoke in a public building.
• D)All of the choices are correct.

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Definitions:

Actual Expenses

The real, documented expenditures incurred by an individual or business.

Direct Expenses

Costs that can be directly traced to producing specific goods or services and can vary with the level of production.

Indirect Expenses

Expenses that cannot be directly linked to the production of goods or services, such as administrative salaries and utilities.

Contribution Margin

The Contribution Margin represents the amount of revenue from sales that exceeds variable costs, contributing to covering fixed costs and generating profit.