The Price Charged for Access to an Uncongested,excludable,non-Rivalrous Good Should

question 110

Multiple Choice

The price charged for access to an uncongested,excludable,non-rivalrous good should be ________ because ________.

• A)positive; consumers receive a positive marginal benefit from consuming the good
• B)positive; marginal cost and marginal benefit for this good are both positive
• C)positive; more than one person can consume this good at the same time
• D)zero; it is inefficient to exclude people from consuming this good once it has been supplied
• E)zero; the marginal benefit of the last unit consumed is zero

Recognize the implications of opportunity costs on business decisions and personal finance.

Analyze decision-making processes in "how much" and "either-or" scenarios.

Understand the impact of implicit costs on economic profit.

Recognize the significance of capital in the context of opportunity costs.

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Definitions:

Gross Margin Percentage

A financial metric that measures the proportion of money left over from revenues after accounting for the cost of goods sold (COGS), expressed as a percentage.

Financial Leverage

A difference between the rate of return on assets and the rate paid to creditors.

Price-Earnings Ratio

A valuation metric that shows the relationship between a company's stock price and its earnings per share.

Dividends

Payments made to shareholders out of a company's profits, often on a regular basis.