A Public Good Is a Good or Service for Which

question 10

Multiple Choice

A public good is a good or service for which exclusion is _____ and which is _____ in consumption.

• A) possible; rival
• B) possible; nonrival
• C) not possible; rival
• D) not possible; nonrival

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Definitions:

Mixed Costs

Expenses comprising both fixed and variable components, changing in total with the level of activity but not proportionately.

Merchandising Firm

A business that purchases finished goods for resale in order to make a profit, differentiating itself from manufacturing firms and service firms.

Gross Margin

The difference between sales revenue and the cost of goods sold, expressed as a percentage of sales revenue.

Contribution Margin

The amount remaining from sales revenue after variable expenses have been deducted; a measure of profitability.