To Achieve the Efficient Amount of Use of a Common

question 276

Multiple Choice

To achieve the efficient amount of use of a common resource, the use should be such that ________ equals ________.

• A) marginal social cost; marginal private cost
• B) marginal social cost; marginal social benefit
• C) marginal social benefit; marginal private cost
• D) marginal private cost; marginal private benefit

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Definitions:

Business Transaction

Any event or exchange involving a transfer of value between two or more parties in a business context.

Assets

Resources owned by a company that have economic value and can provide future benefits.

Future Benefits

The projected economic advantages to be received from an investment, often used in evaluating the potential return from capital projects or investments.

Net Income

The amount of earnings remaining after all expenses, including taxes and costs, have been subtracted from total revenue.