Marginal Benefit and Marginal Cost Must to Avoid a Deadweight

question 26

Multiple Choice

Marginal benefit and marginal cost must to avoid a deadweight loss.

• A)never equal
• B)decrease at an increasing rate
• C)increase at an increasing rate
• D)equal

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Definitions:

Price-Earnings Ratio

A financial metric comparing the present price of a corporation's stock to its earnings per share to assess whether the stock is under or overvalued.

Stock Price Appreciation

The increase in the market price of a company's shares over time.

Earnings Per Share

A company's profit divided by the outstanding shares of its common stock, indicating the company's profitability on a per-share basis.

Continuing Operations

Part of a company's business that is expected to continue operating into the foreseeable future, excluding any discontinued operations.