If an Operation Adds Value to the Original Cost of Resource

question 45

Multiple Choice

If an operation adds value to the original cost of resource inputs,non-profit organizations __________ and business organizations __________.

• A)earn a profit ... increase shareholder value
• B)benefit society ... earn a profit
• C)earn a profit ....promote corporate social responsibility
• D)increase shareholder value ... promote corporate governance
• E)promote corporate social responsibility ... increase market share

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Definitions:

Marginal Social Cost

The total cost to society of producing one additional unit of a good, including both private costs and externalities.

Pollution

The presence in or introduction into the environment of substances or things that have harmful or poisonous effects.

Marginal Social Benefit

The supplementary gain for the general population derived from the consumption of one more unit of a good or service.

Marginal Social Cost

The comprehensive expense to society for creating another unit of a product or service, encompassing both individual costs and any external factors.