Marginal Private Cost Is the

question 9

Multiple Choice

Marginal private cost is the

• A) additional cost to society resulting from a consumer consuming one more unit of a good.
• B) additional cost to society resulting from a privately owned firm producing one more unit of a product.
• C) amount that a consumer pays to produce an additional unit of a good.
• D) the amount that a consumer pays to consume an additional unit of a particular good.

---

Definitions:

Straight-Line Method

A depreciation method that allocates an equal amount of depreciation expense for an asset over its useful life.

Semiannual Interest Expense

The amount of interest cost incurred every six months on borrowed funds.

Straight-Line Method

A method of calculating depreciation for accounting purposes, where an asset's cost is reduced equally over its useful life.

Amortization

The gradual reduction of a debt over a specific period of time through regular payments, or the allocation of the cost of an intangible asset over its useful life.