When Logging in the Pacific Northwest Destroys Forests That Hikers

question 23

Multiple Choice

When logging in the Pacific Northwest destroys forests that hikers would have used for eco-tourism,the destruction of the trails is an example of

• A) an external cost.
• B) a private cost.
• C) a government cost.
• D) an external benefit.
• E) None of the above answers is correct.

---

Definitions:

Marginal Revenue of Advertising

The additional income generated from an increase in advertising expenditure.

Advertising Expenditure

The amount of money spent on promoting products or services through various media and marketing channels.

Marginal Cost of Production

The cost of producing an additional unit of a good, taking into account both variable and fixed costs.

Price Elasticity of Demand

A measure of how much the quantity demanded of a good responds to a change in the price of that good, with elasticity greater than 1 indicating a high responsiveness.