Identify the Following and Show the Formula for Calculating Each

question 29

Essay

Identify the following and show the formula for calculating each:
a.ROI
b.RI
c.EVA

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Definitions:

Marginal Private Benefit

The additional benefit received by the consumer or producer from consuming or producing one more unit of a good or service.

Marginal Social Cost

The additional cost imposed on society as a whole from producing one more unit of a good or service.

Socially Optimal

is a condition or outcome in which the allocation of resources maximizes the overall benefit to society.

Nonexcludable

A characteristic of a good whereby it is difficult or impossible to prevent people who have not paid for it from consuming or using it.