How Will Increases in the Following Items Affect Return on Investment

question 17

Multiple Choice

How will increases in the following items affect return on investment (ROI) ? $$\begin{array} { | l | l | l | } \hline & \text { Erpenses } & \text { Imrentory } \\\hline \text { A. } & \text { Decrease } & \text { Decrease } \\\hline \text { B. } & \text { Decrease } & \text { Increase } \\\hline \text { C. } & \text { Increase } & \text { Decrease } \\\hline \text { D. } & \text { Increase } & \text { Increase } \\\hline\end{array}$$

• A) Option A
• B) Option B
• C) Option C
• D) Option D

---

Definitions:

Common Resource

A resource that is available to all, but which can become depleted if overused, such as air, water, or public land.

Marginal Benefit

The added value or utility one experiences by consuming one more unit of a good or service.

Marginal Social Benefit

The extra advantage to the community from creating or using an additional unit of a product or service.

Marginal Social Cost

The total cost society bears for the production of an additional unit of a good or service, including private and external costs.