Which of the Following Represents an Efficient Quantity of a Public

question 42

Multiple Choice

Which of the following represents an efficient quantity of a public good? The quantity at which the

• A) marginal cost of production is minimized.
• B) number of free riders is maximized.
• C) marginal benefit minus marginal cost is minimized.
• D) marginal benefit is equal to the marginal cost.
• E) marginal benefit exceeds the marginal cost by the maximum amount possible.

---

Definitions:

Management by Exception

A management strategy where managers only intervene in decision making when performance deviates significantly from standards, allowing more focus on important issues.

Controllable

Refers to costs or elements within a business that can be directly managed, influenced, or altered by decisions of management.

Noncontrollable

Refers to expenses or influences that cannot be altered or changed by the management due to external constraints or fixed contract terms.

Flexible Budget

A budget that adjusts or varies with changes in the volume or activity level of a company.