Which of the Following Would Be Best Classified as a Private

question 340

Multiple Choice

Which of the following would be best classified as a private good?

• A) a missile defense system
• B) police force
• C) radio frequency
• D) clothing

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Definitions:

Variable Costs

Additional costs incurred when unit production increases. Variable costs per unit usually are assumed not to vary with volume.

Inventory Costing Method

A system used to value inventory, often involving methods such as First-In, First-Out (FIFO) or Last-In, First-Out (LIFO).

Step-fixed Costs

Costs that remain constant for a certain level of activity, but can change when a new activity level is reached.

Unit Costs

The cost incurred to produce, store, or purchase one unit of a product or service.