ABC Systems ________

question 104

Multiple Choice

ABC systems ________.

• A)usually will undercost complicated or complex products
• B)will limit cost drivers to units of output
• C)highlight the different levels of activities
• D)will allocate costs based on volume
• E)comply with GAAP

Analyze the effects of deregulation in electricity and natural gas delivery industries on prices.

Identify and interpret the profit-maximizing output and pricing decisions of monopolistic firms using graphical analysis.

Distinguish between private and public ownership of monopolies and their economic implications.

Explain the benefits and costs of antitrust laws.

---

Definitions:

Positive Externalities

Benefits that result from a transaction or activity and affect others not directly involved in the transaction or activity.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a product, including both private and external costs.

Marginal Private Cost

The additional cost borne by a producer for producing one extra unit of a good or service.

Marginal Cost Curve

A graphical representation showing the increase in total cost that arises from producing one additional unit of a good or service.