When Infrastructure Is Publicly Owned,it Is Important to Price Usage

question 3

Multiple Choice

When infrastructure is publicly owned,it is important to price usage to reflect

• A)the cost of rebuild the infrastructure once it is fully depreciated.
• B)the incremental profit from the use of the infrastructure.
• C)the marginal impact on the cost to society.
• D)the market clearing price.

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Definitions:

Generating Revenues

Generating revenues refers to the process through which a business earns money by selling goods or providing services.

Expenses

Outflows or other using up of assets or incurrences of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major operations.

Increase Side

In accounting, it refers to the side of a ledger account (debit or credit) where increases are recorded, depending on the nature of the account.

Decrease Side

The side of an account that is used to record decreases in value, typically the left side for assets and expense accounts, and the right side for liability, equity, and revenue accounts.