Society's total cost of producing a good
A)includes only the cost to the firm
B)includes only the external cost
C)includes all private and external costs
D)equals the value of the output level that maximizes the firm's profit
E)equals the value of the output level that minimizes the firm's loss

Question

Quizplus · Accepted Answer

Society's total cost of producing a good includes all private costs (costs to the firm) as well as external costs (costs imposed on third parties not involved in the transaction). Therefore, this answer is the most comprehensive and accurate depiction of the true total cost.

Society's Total Cost of Producing a Good