Which of the Following Statements Is Not True

question 236

Multiple Choice

Which of the following statements is not true?

• A) Some public goods are paid for by private philanthropy.
• B) Private provision of public goods is usually unprofitable.
• C) The free-rider problem results from the characteristics of nonrivalry and nonexcludability.
• D) Public goods are only provided by government.

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Definitions:

Fixed Costs

Regardless of production or sales volumes, certain costs, like rent, salaries, and insurance, do not vary.

Variable Costs

Costs that vary directly with the level of production or sales volume, such as raw materials and direct labor.

Profit and Loss Statement

A financial statement that summarizes the revenues, costs, and expenses incurred during a specific period, typically a fiscal quarter or year.

CVP Analysis

Cost-Volume-Profit Analysis, a tool used to determine how changes in costs and volume affect a company's profits.