​Exhibit 8-1 -Refer to Exhibit 8-1. If the Magnitude of the External

question 187

Multiple Choice

​Exhibit 8-1
-Refer to Exhibit 8-1. If the magnitude of the external benefits increased

• A)​The demand curve including external benefits would shift up
• B)​The efficient price would increase
• C)​The market price would increase
• D)​Both a and b are true

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Definitions:

Cumulative Surplus

The total accumulated excess of income over expenses and losses over a period.

Net Cash Inflow

The difference between a business's cash inflows and cash outflows over a specific period.

Minimum Cash Balance

The least amount of cash a company aims to hold on hand to meet immediate operational and financial demands.

Net Cash Inflow

The difference between a company's cash receipts and its cash disbursements during a specific period.