Activities of a Central Motor Pool That Provides and Services

question 23

Multiple Choice

Activities of a central motor pool that provides and services vehicles for the use of municipal employees on official business should be accounted for in

• A) General Fund.
• B) Enterprise Fund.
• C) Internal Service Fund.
• D) Special Revenue Fund.

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Definitions:

Socially Optimal

A condition or level of operation where social welfare is maximized, considering all costs and benefits to society.

Marginal Cost

The rise in total expenses incurred from the production of an extra unit of a product or service.

Profit-maximizing Output

The level of production at which a firm achieves the highest possible profit, where marginal revenue equals marginal cost.

Higher Prices

An increase in the cost that consumers must pay to purchase goods or services.