Which of the Following Is True

question 172

Multiple Choice

Which of the following is true?

• A) MSC = MC + Marginal external cost.
• B) MC = Marginal external cost - MSC.
• C) MC = Marginal external benefit + MSC.
• D) MSC = Marginal external cost + marginal external benefit.
• E) MSC = Marginal external cost - marginal external benefit.

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Definitions:

Plant Asset

Long-term tangible assets used in the operations of a business that are not intended for sale.

Disposal

The act of getting rid of an asset through sale, exchange, retirement, or destruction.

Boot

The amount a buyer owes a seller when a fixed asset is traded in on a similar asset.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset up to a specific point in time.