$\text { Table } 28.2$ For Which Firm Are All Costs Internalized in Table 28

question 125

Multiple Choice

$\begin{array}{c}\begin{array}{lll}\\\text {Extemal costs}\\\text {Private costs}\\\text {Social costs} \end{array}\begin{array}{c}\underline{\text { Firm A }}\\\$ 0 \\400\\\underline{\quad\quad} \end{array}\begin{array}{c}\underline{\text { Firm B }}\\\$ \\250\\350 \end{array}\begin{array}{c}\underline{\text { FirmC}}\\175 \\175\\\$\end{array}\begin{array}{c }\underline{\text { FirmD}}\\\$ \\200\\250\end{array} \end{array}$

$\text { Table } 28.2$ For which firm are all costs internalized in Table 28.2?

• A)FirmA
• B)FirmB
• C)FirmC
• D)FirmD

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Definitions:

Costs

Expenses incurred in the process of creating, manufacturing, or providing a service or product, including fixed, variable, and semi-variable costs.

Controllable Margin

Contribution margin less controllable fixed costs.

Controllable Fixed Costs

Fixed costs that management has the ability to influence or change in the short term.

Profit Center

A responsibility center that incurs costs and also generates revenues.