Which of the Following Statements Is Correct

question 102

Multiple Choice

Which of the following statements is correct?

• A)Marginal social cost is the share of marginal cost caused by an activity that is paid for by the persons who carry out the activity.
• B)Marginal private cost is the share of marginal cost caused by an activity that is borne by persons other than those who carry out the activity.
• C)Marginal social cost is the sum of marginal private cost and incidental cost.
• D)Marginal private cost and incidental cost are one and the same.

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Definitions:

Statistic

is a single measure, calculated from sample data, used to infer or describe properties of a population.

Significance Level

A threshold for determining whether a statistical result is considered statistically significant, usually denoted by alpha (α).

Statistical Inference

The process of drawing conclusions about population parameters based on data from a sample.

Descriptive Statistics

Statistical methods that summarize and describe the features of a collection of data, including measures of central tendency and variability.