Which of the Following Characteristics Best Defines a Public Good

question 10

Multiple Choice

Which of the following characteristics best defines a public good?

• A) rival and excludable
• B) rival and nonexcludable
• C) nonrival and nonexcludable
• D) nonrival and excludable
• E) a good that is never produced by the government

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Definitions:

Cost Formula

An equation or model used to predict and allocate costs based on certain variables or cost drivers.

Activity Level

The volume of production or the level of activity in a business that impacts costs and operating income.

Total Cost

The complete cost of producing or acquiring a product or service, including fixed and variable costs.

High-Low Method

An accounting technique used to estimate fixed and variable costs based on the highest and lowest levels of activity.