A Public Good Will

question 98

Multiple Choice

A public good will:

• A) be efficiently provided by the free market as long as its total benefits exceed its total costs.
• B) be efficiently provided by the free market as long as its marginal benefits exceed its marginal costs.
• C) be provided in less than efficient quantities by the free market.
• D) be provided in efficient quantities by voluntary contributions.
• E) not be provided by the government.

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Definitions:

Cost Center

A business division that incurs costs but directly does not generate revenues, its performance being measured through cost control.

Level of Management

The different stages or tiers in an organization's hierarchy, each with specific responsibilities, ranging from top executives to middle managers to front-line supervisors.

Responsibility Accounting

The process of measuring and reporting operating data by areas of responsibility.

Responsibility Centers

Responsibility centers refer to distinct segments or areas within a company for which individual managers are accountable for revenue, costs, or investments.