Which of the Following Is Usually Associated with a Positive

question 102

Multiple Choice

Which of the following is usually associated with a positive externality?

• A) smoking cigarettes
• B) listening to a new CD with earbuds
• C) innovation in the semiconductor industry
• D) an indoor classical music concert with tickets that cost $50

---

Definitions:

Variable Production Cost

Charges that fluctuate in line with production levels, such as direct labor and materials used.

Split-off

A point in the production process where multiple products are derived from a common input, and separate paths of further processing or sale are identified.

Avoidable Fixed Production Cost

Fixed costs that can be eliminated if a particular product, service, or segment is discontinued.

Surplus Material

Materials that exceed the requirements of the production process, often resulting in excess inventory.