An Inframarginal Externality Is Where_____

question 44

Multiple Choice

An inframarginal externality is where_____.

• A)there are spillover benefits and costs,both in total and on the margin.
• B)there are spillover benefits and costs,but only in total.
• C)there are no spillover benefits,but there are marginal costs
• D)there are spillover benefits and costs,but they relate only to infrared technology

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Definitions:

Direct Materials Cost

The expense incurred for raw materials that are directly incorporated into a finished product during the manufacturing process.

Direct Labor Cost

The total cost of labor directly involved in the production of goods or services.

Dividends

Payments made by a corporation to its shareholder members, usually derived from the company's profits.

Cost

The amount of spending in monetary terms incurred in the production of goods or in providing services.