Which of the Following Statements Is FALSE

question 42

Multiple Choice

Which of the following statements is FALSE?

• A) The maximum price people are willing to pay for one more unit of a good is its value.
• B) A good's marginal benefit is the maximum price people are willing to pay for another unit.
• C) The value of one more unit of a good is the good's marginal benefit.
• D) None of the above because all the statements are true.

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Definitions:

Total Revenues

The total amount of income generated by a business from its sales of goods or services before any expenses are subtracted.

Capital Account

An account showing the net worth of a business at a specific point, accounting for assets minus liabilities.

Statement of Owner's Equity

A financial document that summarizes the changes in the equity of a company over a period, including investments, withdrawals, and the net income or loss.

Income Statement

A financial report summarizing the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.