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qwelly [4]
3 years ago
12

What is difficult about using cost-benefit analysis to estimate the level of a public good that will maximize social welfare? It

is difficult to estimate the marginal costs of supplying a public good. The government cannot use cost-benefit analysis to estimate this. It is difficult to estimate the marginal social benefits of supplying a public good. The costs of using it may make the provision of the public good prohibitive.
Business
1 answer:
scoundrel [369]3 years ago
6 0

Answer:

It is difficult to estimate the marginal social benefits of supplying a public good.

Explanation:

A public good will always be beneficial to the society. However, the exact <u>social benefits</u> it brings cannot be exactly (quantitatively) measured. The costs behind the creation of such a good can be measured (e.g. How much of funding is needed to build a hospital in a village?).

On the other hand, the marginal social benefit for each unit of resources invested cannot be identified (e.g. How many people would benefit for a million dollars invested?).

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Cost-based pricing is sometimes justified by arguing that it ensures that a company receives a good profit on the products that it sells.

<h3>What is cost based pricing?</h3>

It should be noted that cost based pricing simply means a pricing method based on cost of production and distribution of a product.

In this case, cost-based pricing is sometimes justified by arguing that it ensures that a company receives a good profit on the products that it sells.

Learn more about cost based pricing on:

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2 years ago
Enlightenment thinkers were concerned with how man would be without _____.
kolezko [41]

Answer:

The government

Explanation:

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3 years ago
Plzzz helppp ASAP <br><br> Describe two ways that externalities affect the lives of US citizens?
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(a) Eva endorsed the check, without making any further notations on it, deposited it and sued Maria for the remaining $15,000 she claims is due. Judgment for whom?

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(b) Instead of the facts in (a) assume that Eva wrote "under protest" on the check when she endorsed it and, after depositing it, sues Maria for $15,000. What result?

If Eva wrote under protest, then she is not accepting Maria's payment. She is entitled to cash the check because she might need the money, but she is making it clear that she doesn't agree with the settlement. Eva could win the suit (that also depends on other factors not specified in the question).

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