Figure 10-11 -Refer to Figure 10-11. Which of the Following Magnitudes Is

question 313

Multiple Choice

Figure 10-11
-Refer to Figure 10-11. Which of the following magnitudes is constant over all units of output?

• A)the private value of the last unit of output that was produced and sold
• B)the social value of the last unit of output that was produced and sold
• C)the external benefit of the last unit of output that was produced and sold
• D)the private cost of the last unit of output that was produced and sold

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Definitions:

Income Statement

A report detailing a business's income, outgoings, and profit over a set period.

Financial Statement

A financial statement is a report that provides information regarding a company's financial performance and position, including its income statement, balance sheet, and cash flow statement.

Profit

The financial gain achieved when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Accounting Equation

The fundamental equation of double-entry bookkeeping, stating that assets equal liabilities plus equity.