Table: Example Goods a Watermelon a Lighthouse Smog Reduction Online

question 98

Multiple Choice

Table: Example Goods A Watermelon A Lighthouse Smog Reduction Online Video Games Cable Internet Service National Defense A Private Beach A Public Beach A Pencil Soup Kitchen Meals A Chair Toll Highways Public Roads Reference: Ref 18-2 (Table: Example Goods) Refer to the table. Which of the following contains only nonexcludable and rival goods from the table?

• A) a public beach, soup kitchen meals, public roads
• B) online video games, a private beach, toll highways, cable Internet service
• C) national defense, a lighthouse, smog reduction
• D) online video games, a public beach, soup kitchen meals, public roads

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, used to cover fixed expenses and provide profit.

Units Sold

The total quantity of products sold within a specific period.

Absorption Costing

An accounting method that includes all of the manufacturing costs in the cost of a product, including both fixed and variable costs.

Production Increase

A situation where a company enhances its output of products due to higher demand, improved efficiencies, or expansion efforts.