If the Marginal Benefit of the Next Slice of Pizza

question 99

Multiple Choice

If the marginal benefit of the next slice of pizza exceeds the marginal cost,you will

• A) eat the slice of pizza.
• B) not eat the slice of pizza.
• C) be unable to choose between eating or not eating.
• D) eat half the slice.
• E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, highlighting the net profit or loss.

Perpetual Inventory System

An immediate inventory recording technique utilizing computerized point-of-sale systems and enterprise asset management software to document sales or purchases.

Freight In

The cost of transportation or shipping of raw materials or goods into a production facility or warehouse.

Periodic Method

An accounting system where inventory values and cost of goods sold are determined at the end of an accounting period.