A private cost of production is a cost that is borne by the ________ of a good or service. A social cost of production is a cost that is ________.
A)consumer;borne by the producer and by everyone else on whom the cost falls
B)consumer;not borne by the producer but borne by other people
C)producer;not borne by the producer but borne by other people
D)producer;borne by the producer and by everyone else on whom the cost falls
E)producer;borne by the consumer

Question

Quizplus · Accepted Answer

A private cost of production is a cost that is directly borne by the producer of a good or service. A social cost of production includes both the private cost and any additional costs (externalities) borne by others who were not involved in the transaction.

A Private Cost of Production Is a Cost That Is