Answer the Next Question on the Basis of the Following

question 75

Multiple Choice

Answer the next question on the basis of the following information is for public good.P_a and P_b represent the prices that citizens (a) and (b) , the only two people in this nation, are willing to pay for additional units of a quantity (Q_c) of the public good.Q_s represents the quantity of the public good supplied by government at each of the collective prices.If only 1 unit of this public good is produced, then the marginal benefit is:

• A)$3 and the marginal cost is $9.
• B)$4 and the marginal cost is $7.
• C)$6 and the marginal cost is $3.
• D)$9 and the marginal cost is $5.

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Definitions:

Ending Inventory

The total value of all inventory that a company has in stock at the end of an accounting period.

Inventory Accounting

The process of valuing and tracking physical stock and its cost flow from purchase to sale, used to determine cost of goods sold and inventory balance.

FOB Destination

A shipping term indicating that the seller bears the freight charges and retains ownership of goods in transit until they are delivered to the buyer.

FOB Shipping Point

A term used in shipping agreements indicating that the buyer takes ownership and responsibility for goods at the moment they are shipped.