The Cost-Benefit Model Used by Economists Is

question 57

Multiple Choice

The cost-benefit model used by economists is:

• A) unrealistic because it is too detailed and specific to apply to a variety of situations.
• B) unrealistic because everyone can think of times when he or she violated the principle.
• C) useful because everyone follows it all of the time.
• D) useful because most people follow it most of the time.

---

Definitions:

Selling Price

The amount of money charged for a product or service, or the sum a buyer pays to acquire something.

Normal Cost

The standard or usual expense associated with manufacturing a product, including direct labor, direct materials, and manufacturing overhead under normal operating conditions.

Portable Computer

A computer designed to be easily moved from one place to another, including laptops, notebooks, and other mobile computing devices.

Outside Supplier

A third-party entity that provides goods or services to a company, which are not produced in-house.