The Benefit from an Additional Unit of a Good or Service

question 104

Multiple Choice

The benefit from an additional unit of a good or service that the consumer of that good or service receives is the

• A) opportunity cost.
• B) marginal private benefit.
• C) marginal external benefit.
• D) marginal social benefit.

---

Definitions:

Doubtful Accounts

Accounts receivable that a company believes might not be collected due to credit risk.

Allowance Method

An accounting technique used to estimate and anticipate uncollectible accounts receivable and bad debts.

Reinstated Account

An account previously closed or inactivated that has been restored to active status.

Uncollectible Receivables

Debts that are deemed unrecoverable by a company after exhaustive attempts to collect them, often written off as an expense.