A Good Is Nonrivalrous in Consumption If

question 37

Multiple Choice

A good is nonrivalrous in consumption if

• A)its consumption by one person does not reduce its consumption by others.
• B)its consumption by one person reduces its consumption by others.
• C)it is possible, or not prohibitively costly, to exclude someone from receiving the benefits of the good once it has been produced.
• D)it is impossible, or prohibitively costly, to exclude someone from receiving the benefits of the good once it has been produced.
• E)a and d

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Definitions:

Fixed Overhead

This refers to the consistent, non-variable costs incurred by a business, regardless of its level of production or sales volumes.

Variable Overhead

Costs that vary with the level of production output, such as utilities for machines and indirect materials.

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services.

Variable

An element, feature, or factor that is liable to vary or change.