Which of the Following Arguments Would Be MOST Compelling to an Economist

question 69

Multiple Choice

Which of the following arguments would be MOST compelling to an economist considering the development of a wetland?

• A)Wetlands are enjoyed by bird watchers.
• B)Biodiversity is sometimes low in wetlands.
• C)Wetlands provide habitat for muskrats and beavers.
• D)Wetlands provide ecosystem services like water purification that would cost millions to replace.

---

Definitions:

Depreciation

The allocation of the cost of a tangible asset over its useful life, reflecting wear and tear or obsolescence.

Fixed Costs

Costs that do not change with the level of production or sales activities within a certain range or period of time, such as rent, salaries, and insurance.

Contribution Margin

The amount remaining from sales revenue after variable expenses are deducted, indicating how much contributes to covering fixed costs and generating profit.

Variable Cost

Expenses that change in proportion to the volume of output or sales, including items like labor and materials.