For a Government to Be Efficient,a Project Should Be Funded

question 20

Multiple Choice

For a government to be efficient,a project should be funded up to

• A)MB = 0.
• B)MB =
• C)MC = 0.
• D)MC =
• E)MB = MC.

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Definitions:

Fixed Expenses

Costs that do not fluctuate with the volume of production or sales, such as rent, salaries, and insurance premiums.

Cost-Plus Methods

Methods of price setting determined by the cost amount per unit plus a markup based on the desired profit per unit.

Selling Price

The amount of money for which a product or service is sold to customers.

Markup

The amount added to the cost price of goods to cover overhead and profit, determining the selling price.