Given the Cost Formula Y = $12,000 + $6X,what Is

question 43

Multiple Choice

Given the cost formula Y = $12,000 + $6X,what is the total cost at an activity level of 8,000 units?

• A) $12,000.
• B) $20,000.
• C) $48,000.
• D) $60,000.

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Definitions:

Public Good

Goods or services that are distributed to all individuals within a society without charge, presented by either public authorities or private entities, not for profit motives.

Free-rider Problem

A situation where individuals or entities benefit from resources, goods, or services without paying for them, which often leads to under-provision of those goods or services.

Private Firms

Businesses that are owned by individuals or groups of individuals and are not controlled or operated by the government.

Public Good

A public good is a commodity or service that is made available to all members of a society, typically by the government, and is characterized by non-excludability and non-rivalry in consumption.