________ Cause Private and Social Marginal Cost Curves to Diverge

question 23

Multiple Choice

________ cause private and social marginal cost curves to diverge while ________ cause private demand and social marginal WTP to diverge.

• A) External benefits; external costs
• B) External costs; external benefits
• C) Market failures; public goods
• D) Taxes; subsidies

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Definitions:

Net Income

The profit of a company after all expenses, taxes, and costs have been deducted from total revenue.

Financial Analysis

The process of evaluating businesses, projects, budgets, and other finance-related entities to determine their performance and suitability.

Ratio

An expression of the mathematical relationship between one quantity and another. The relationship may be expressed either as a percentage, a rate, or a simple proportion.

Horizontal Analysis

A financial analysis technique that evaluates changes in financial statement items over a series of accounting periods, showcasing trends and growth patterns.