When the Production of a Good Has an External Cost,the

question 106

Multiple Choice

When the production of a good has an external cost,the

• A)marginal social cost curve lies below the marginal private cost curve.
• B)marginal social benefit curve lies above the marginal private benefit curve.
• C)equilibrium quantity in an unregulated, competitive market has a marginal social cost greater than the marginal social benefit.
• D)equilibrium quantity in an unregulated, competitive market has a marginal social cost less than the marginal social benefit.
• E)none of the above.

Identify and calculate required changes in fixed assets for projected sales increases.

Comprehend the relationship between profit margin, retention ratio, and growth rates.

Analyze how dividend payout and retention ratios affect financial planning.

Estimate growth potential given operational capacity constraints.

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Definitions:

Gross Earnings

The total income earned by an individual or a business before any deductions or taxes are taken out.

Withholding Allowance

A claim made by an employee on a form W-4 to determine the amount of income tax withheld from their paycheck.

Federal Income Tax

A charge imposed by the IRS on the yearly income of persons, corporations, trusts, and various legal bodies.

Gross Earnings

The total amount of money earned by an individual or company before deductions such as taxes and retirement contributions.