Which of the Following Is True Concerning Infrastructure Assets

question 139

Multiple Choice

Which of the following is true concerning infrastructure assets?

• A) Capitalization of infrastructure is optional
• B) Capitalization of infrastructure is required
• C) Governments must depreciate infrastructure assets
• D) Governments rarely possess infrastructure

---

Definitions:

Economic Profit

The difference between the total revenue earned from production and the total costs (including both explicit and implicit costs) involved in the creation of that production.

Excess Profit

Profit earned by a firm that exceeds the normal profit level, often due to monopolistic power or market inefficiencies.

Marginal Revenue

The additional income generated from selling one more unit of a good or service.

Monopolistic Competitor

A firm in a market structure where many companies sell products that are similar, but not identical, allowing for competition on factors other than price.