Fish in the Sea Can Be Harvested Until _____

question 141

Multiple Choice

Fish in the sea can be harvested until _____

• A)the marginal benefit of catching more fish is less than the marginal cost.
• B)the marginal benefit of catching more fish is greater than the marginal cost.
• C)the marginal benefit of catching more fish becomes negative.
• D)the marginal benefit of catching more fish becomes infinity.
• E)the marginal benefit of catching more fish becomes zero.

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Definitions:

Salvage

The prognosticated residual valuation of an asset upon reaching the end of its utility.

Profitability Index

A financial metric that calculates the relationship between the present value of future cash flows and the initial investment cost.

Preference Rule

A guideline or rule that prioritizes alternatives based on certain criteria, often used in decision-making processes.

Nominal Cost

The cost expressed in current monetary terms without adjustment for inflation, often contrasted with real cost.