Which of the Following Best Describes the Reason for Over

question 72

Multiple Choice

Which of the following best describes the reason for over fishing in Canadian offshore fisheries?

• A)Fishing has depleted fish stocks leading to smaller catches.
• B)The private marginal cost incurred by current fishermen is less than the social marginal cost.
• C)The private marginal cost incurred by future generations of fishermen is greater than the private marginal cost incurred by current fishermen.
• D)The Canadian government encourages foreign fishing within the Canadian offshore boundary.
• E)None of the above can explain overfishing.

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Definitions:

Product Costs

Costs that are directly attributable to the creation of products including direct labor, direct materials, and manufacturing overhead.

Lean Production

A management approach that organizes resources such as people and machines around the flow of business processes and that only produces units in response to customer orders.

Inventories

Items such as raw materials, work-in-progress, and finished goods that a company holds for sale in the ordinary course of business.

Net Operating Income

The total profit of a company after operating expenses are subtracted from total revenue but before deducting taxes and interest.