Net Present Value Is Based on Computing the Quantity of Goods

question 9

True/False

Net present value is based on computing the quantity of goods a company needs to sell to just cover its costs.

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Definitions:

Public Good

A good that is non-excludable and non-rival in consumption, meaning no one can be prevented from using it and one person's use does not reduce availability to others.

Marginal Social Benefit

The additional benefit to society from producing one more unit of a good or service.

Marginal Benefit

The bonus satisfaction or benefit gained by consuming one more unit of a good or service.

Marginal Social Benefit

The additional benefit to society from consuming one more unit of a good or service.