When Firms Make Decisions About Output and About the Amount

question 107

Multiple Choice

When firms make decisions about output and about the amount of pollution that they produce,without government regulation

• A)Firms only consider their private benefits and costs when making their choices
• B)Firms choose not to pollute because it's bad for their public image
• C)Social costs are always

---

Definitions:

Work in Process

Materials and products that are in the middle of the production process but are not yet completed goods.

Added to Production

The process or action of incorporating additional inputs or resources into the production process to increase output.

Cost Per Equivalent Unit

A calculation used in process costing that determines the cost assigned to each unit, taking into account units that are partially completed at the end of a period.

Weighted-Average Method

An inventory costing method that calculates the cost of goods sold and ending inventory based on the average cost of all items available for sale.