-The Schedules in the Table Give the Marginal Social Benefit

question 218

Multiple Choice

-The schedules in the table give the marginal social benefit and marginal social cost of a DVD. If the number of DVD produced is cut to 2 a week, then the

• A) minimum supply-price of the second DVD is $18.
• B) price is $18 a DVD.
• C) opportunity cost of the second DVD is $22.
• D) value of the second DVD is $20.

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Definitions:

Interest Revenue

Income earned on investments, loans, and other interest-bearing financial assets, reflecting the cost paid to the entity for the use of its funds.

AASB 16

The Australian Accounting Standard Board 16 specifies the principles for the recognition, measurement, presentation, and disclosure of leases, both for lessees and lessors.

IFRS 16

An International Financial Reporting Standard that specifies the principles for recognizing, measuring, presenting, and disclosing leases, primarily affecting lessees by requiring most leases to be reported on the balance sheet.

Manufacturer/Dealer Lessors

Entities that lease out assets they manufacture or sell, as part of their main business operations, to earn income and stimulate demand for their products.