-For a Common Resource, the Equilibrium with No Government Intervention

question 51

Multiple Choice

-For a common resource, the equilibrium with no government intervention is such that ________ equals ________.

• A) marginal social cost; marginal social benefit
• B) marginal social benefit; marginal external cost
• C) marginal private benefit; marginal social cost
• D) marginal social benefit; marginal private cost
• E) marginal external benefit; marginal external cost

---

Definitions:

Work in Process Inventory

Work in process inventory consists of goods and materials that have started the production process but are not yet completed at a specific point in time.

Cost of Goods Sold

The direct costs attributable to the production of goods sold in a company, including material and labor costs.

Work in Process Inventory

The value of the goods that are partially completed by a company but not yet ready for sale.

Push Production

A manufacturing process where products are made based on predicted demand and pushed to the market, as opposed to being pulled by actual demand.