The Marginal Cost of Providing a Certain Quantity of a Pure

question 35

Multiple Choice

The marginal cost of providing a certain quantity of a pure public good to an additional consumer after it is provided to any one consumer is:

• A)zero.
• B)positive and increasing.
• C)positive and decreasing.
• D)positive and constant.

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Definitions:

Allowance for Doubtful Accounts

An estimation of the amount of credit sales that are expected to turn into bad debts.

Bad Debts Expense

The cost associated with accounts receivable that a company is unable to collect, considered an expense on the income statement.

Note Receivable

A financial asset representing a promise to receive a specific amount of money in the future, often with interest.

Receipt

A written acknowledgment that something of value has been transferred from one party to another.