When the Commons Are Converted into Privately Owned Resources

question 71

Multiple Choice

When the commons are converted into privately owned resources:

• A)utilization is increased,and benefits to the society declines.
• B)utilization is increased,and the benefits to the society also increases.
• C)utilization is decreased,and the benefits to the society also decreases.
• D)utilization remains unchanged,and the benefits to the society increases.
• E)utilization is decreased,and the benefits to the society increases.

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Definitions:

Contribution Margin Ratio

A financial metric that shows the percentage of revenue that exceeds variable costs, indicating how much revenue contributes to fixed costs and profits.

Margin of Safety

The difference between actual or expected sales and sales at the break-even point, indicating the cushion against losses.

Sales

The total amount of revenue generated from the selling of goods or services by a company during a specific period.

Cost-Volume-Profit Analysis

Cost-Volume-Profit Analysis is a managerial accounting technique that analyzes how changes in costs and volume affect a company's operating income and net income.