Which of the Following Is Not a Characteristic of a Public

question 151

Multiple Choice

Which of the following is not a characteristic of a public good?

• A)It requires resources to produce.
• B)It is not diminished or depreciated as additional people consume the good.
• C)Its benefits cannot be withheld from anyone.
• D)Because it is a free good, there is no opportunity cost.

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Definitions:

Variable Costs

Expenses that vary in relation to the amount of products or services a company generates.

Short Run

A period in which at least one input is fixed and cannot be changed by the firm.

Variable Costing

A cost accounting method that includes only variable costs—costs that change with production levels—in product cost calculations.

Manufacturing Margin

The difference between the cost of manufacturing goods and the sale price, indicating the profitability of production activities.