The Value of One More Unit of a Good or Service

question 429

Multiple Choice

The value of one more unit of a good or service is the

• A) marginal benefit.
• B) minimum price that people are willing to pay for another unit of the good or service.
• C) marginal cost.
• D) opportunity cost of producing one more unit of a good or service.

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Definitions:

Limited Liability Company

A commercial entity setup that integrates the benefit of paying taxes only once, as seen in partnerships or sole proprietorships, with the advantage of limited personal risk akin to that in a corporation.

Noncorporate Business

An enterprise that operates for profit but is not legally incorporated; examples include sole proprietorships and partnerships.

Limited Partnership

A business organization with one or more general partners who manage the business and assume legal debts and obligations, and one or more limited partners who are liable only to the extent of their investments.

Dissolved

The process of legally terminating the existence of an entity, such as a corporation or partnership, according to the laws of the jurisdiction in which it is registered.