The Distinguishing Characteristic of Private Goods Is That

question 126

Multiple Choice

The distinguishing characteristic of private goods is that

• A) the principle of rival consumption does not apply to them.
• B) their use is exclusive to the people who purchase them.
• C) they can be sold but not rented.
• D) they can be sold or rented, but not borrowed.

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Definitions:

Total Fixed Cost

The sum of all costs that do not change with the level of output, such as rent, salaries, and loan payments.

Cupcake Bakery

A specialized bakery that focuses on baking and selling a variety of cupcakes.

Variable Cost

Costs that change in proportion to the level of goods or services produced by a business.

Total Cost

The overall expense incurred in the production of goods or services, including both fixed and variable costs.