Because the Variable Costs Are Directly and Causally Linked to Usage

question 121

True/False

Because the variable costs are directly and causally linked to usage, charging them as a function of the actual usage is appropriate.

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Definitions:

Positive Externalities

Benefits that affect parties who did not choose to incur that benefit, often associated with public goods or services, like education and vaccination.

Public Good

A public good is a product that one individual can consume without reducing its availability to another individual and from which no one is excluded.

Rival Good

A type of good where one person's consumption of the good reduces the ability of another person to consume the same good.

Exclusive Good

A product or service that is available only to certain people or groups, often due to high price or scarcity.