Overproduction of a Good Means That

question 83

Multiple Choice

Overproduction of a good means that

• A)deadweight loss has been eliminated.
• B)the sum of consumer surplus and producer surplus is greater than the sum for an efficient allocation.
• C)marginal social cost exceeds marginal social benefit.
• D)marginal social benefit exceeds marginal social cost.
• E)this is a public good.

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Definitions:

Repair Expense

Costs incurred to fix or maintain property or equipment, generally deductible in the year they are incurred for tax purposes.

IRC Section 179

Allows taxpayers to deduct the cost of certain property as an expense when the property is placed in service (rephrased definition for §179 Expense).

Depreciated

The reduction in the recorded cost of an asset in accounting, reflecting wear and tear, age, or obsolescence.

Ordinary Expense

An expense that is common, accepted, necessary, and appropriate for a business or individual's trade or profession under tax law.