Depreciation on a Factory Machine Is an Example of Which

question 74

Multiple Choice

Depreciation on a factory machine is an example of which of the following types of cost?

• A)Variable cost
• B)Sunk cost
• C)Opportunity cost
• D)Period cost

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Definitions:

Market Demand Curve

A graphical representation showing the quantity of a good consumers are willing and able to buy at different price levels.

Social Optimum

The ideal level of allocation of resources that results in the highest possible economic welfare for society.

Corrective Tax

A tax designed to encourage or discourage certain behaviors by including the cost of externalities, thereby correcting an inefficient market outcome.

Tax Revenue

The income that is gained by governments through taxation, serving as a primary source of financing government expenditures.