Which of the Following Is a Correct Statement

question 174

Multiple Choice

Which of the following is a correct statement?

• A) To obtain the economy's marginal benefit for a public good, marginal benefits of all individuals at each quantity have to be added.
• B) To obtain the economy's marginal benefit for a public good, the quantity that all individuals are willing to buy at each price must be added.
• C) To obtain the economy's marginal benefit curve for a public good, we sum the individual demand curves horizontally.
• D) Because public goods are nonexcludable, the economy's marginal benefit curve for a public good is the same as its marginal cost curve.
• E) None of the above answers is correct.

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Definitions:

Straight-Line Depreciation

is a method of calculating the depreciation of an asset by evenly spreading its cost over its useful life.

Residual Value

The anticipated amount an asset is expected to be worth when it is sold after reaching the end of its usability.

Units-of-Production Method

A depreciation approach based on the actual usage, operational output, or units of production of the asset, rather than on time alone.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life to account for the decrease in value over time.