Suppose That a Market Is in Equilibrium and That There

question 14

Multiple Choice

Suppose that a market is in equilibrium and that there is no government intervention in the market.If the private marginal cost of producing an item is $4 and the social marginal cost of production is $6,what is the private marginal benefit of the item?

• A) $2
• B) $4
• C) $10
• D) $6

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Definitions:

Subsidiary Ledgers

Detailed ledgers that break down and provide supporting information for accounts listed in the general ledger.

Subsidiary Posting

A detailed entry process in accounting that involves recording transactions in subsidiary ledgers for a more comprehensive financial tracking.

General Ledger

A comprehensive record of all financial transactions over the life of a company, used to compile financial statements.

Cash Receipts

The accumulation of funds, usually through cash or checks, garnered by a company from its operational activities.