What Formula Should Be Used to Calculate Benefits to Cost

question 33

Multiple Choice

What formula should be used to calculate benefits to cost ratio?

• A) BCR = (Benefits of the Program)/(Cost of the Program)
• B) BCR = (Cost of the Program - Benefits)/(Benefits of the Program)
• C) BCR = (Benefits - Cost of the Program)/(Cost of the Program)
• D) BCR = (Cost of the Program - Benefits)/(Cost of the Program)

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Definitions:

Efficient Joint Production

Efficient joint production occurs when a firm or economy can produce multiple products at the lowest possible cost, maximizing the use of inputs to achieve optimal output levels.

Downward-Sloping Demand

The economic concept that, all else being equal, as the price of a good decreases, consumer demand for that good will increase.

Public Ownership

The ownership of assets by the government or the entire community rather than by private individuals or corporations.

Price Discrimination

A pricing strategy where identical or substantially similar goods or services are sold at different prices by the same provider in different markets.