The Following Table Shows the Costs and Benefit of Producing

question 90

Multiple Choice

The following table shows the costs and benefit of producing a commodity.Table 13.1

-Which of the following is not a problem with a public good?

• A)An incentive to free-ride
• B)A public good is often underconsumed
• C)An absence of private property rights
• D)An inability to limit consumption to those who purchase the good
• E)A public good is usually underproduced

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Definitions:

Purchase Returns And Allowances

Transactions where a buyer returns goods to the seller or receives a reduction in the purchase price for unsatisfactory goods.

Purchase Discounts

Reductions in price granted by suppliers to buyers for prompt payment or purchase volume.

Net Purchases

The total amount of goods purchased for resale, minus returns and allowances, plus freight and other acquisition costs.

Net Sales

Net sales is the total revenue from goods and services sold by a business, minus returns, allowances, and discounts, indicating the actual sales revenue.