The Mathematical Expression of a Relationship Between Two or More

question 70

Multiple Choice

The mathematical expression of a relationship between two or more variables is usually known as

• A)a definition.
• B)an assumption.
• C)an observation.
• D)a function.
• E)a theory.

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Definitions:

Marginal Social Benefit

The additional benefit to society as a whole from increasing the output of a good by one unit.

Private Cost

The costs directly incurred by those who are producing or consuming goods or services.

Marginal Social Benefit

The additional gain to society as a whole from an extra unit of production.

Marginal Social Cost

The cost to society of producing an additional unit of a good or service, including both the private costs and any external costs.