A Situation in Which a Benefit or a Cost Associated

question 349

Multiple Choice

A situation in which a benefit or a cost associated with an economic activity spills over to third parties is called

• A) a public good.
• B) a merit good.
• C) an externality.
• D) the free-rider problem.

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Definitions:

Break-even Point

The point where total costs and total revenues are the same, leading to neither profit nor loss in sales or production levels.

Sales Dollars

The overall income earned from the sales of products or services, measured in currency.

Break-even

The point at which total costs and total revenue are equal, resulting in no profit or loss for the business.

Variable Cost

Outgoings that are directly influenced by how much is produced or sold, including the costs of labor and materials.