A Common Resource Is Used Efficiently If

question 137

Multiple Choice

A common resource is used efficiently if

• A) the output is maximized.
• B) marginal social benefit equals marginal social cost.
• C) marginal private benefit equals marginal cost.
• D) marginal social benefit is maximized.
• E) only the excess of the resource is utilized.

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Definitions:

Gain On Disposal

The profit realized from the sale of assets other than inventory, exceeding the book value of the assets sold.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since its purchase.

Accelerated Depreciation

A method of depreciation that allows a larger portion of an asset's cost to be deducted in the early years of useful life.

Freight Costs

The expenses incurred to transport goods from one location to another.