Use the Following to Answer Questions

question 92

Multiple Choice

Use the following to answer questions:
-(Table: Externalities from Parks) The table shows the marginal social benefit and the marginal social cost of preserving various amounts of land in a city for a public park. Without government intervention, at the amount of land dedicated to the public park the marginal social cost will be:

• A) $225.
• B) $150.
• C) $100.
• D) $0.

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Definitions:

Days' Sales

This is a measure of a company’s operational efficiency, indicating how many days it takes for a company to turn its inventory into sales.

Average Collection Period

The average amount of time it takes for a business to receive payments owed by its customers.

Accounts Payable

The amount a company owes to its suppliers or vendors for goods or services received but not yet paid for.