If the Output of Product X Is Such That Marginal

question 96

Multiple Choice

If the output of product X is such that marginal benefit equals marginal cost:

• A)the correct amount of resources is being allocated to X's production.
• B)the value of producing X and the value of producing alternative products with available resources is the same.
• C)there can be no net gain to society by allocating either more or less resources to producing X.
• D)all of the above are true.

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Definitions:

Cash Flows

The total amount of money being transferred into and out of a business, especially affecting liquidity.

GAAP Estimate

An accounting estimate made following Generally Accepted Accounting Principles guidelines.

Prior-Period Adjustment

Corrections made to an organisation’s financial statements for errors found in the financials of preceding periods.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, including all unrealized gains and losses.