Marginal external costs are
A)additional unpriced costs imposed on society by producing one more unit of a good
B)the cost of damaged goods
C)the additional cost of imported goods
D)the total cost to society of producing a good
E)the marginal cost divided by the marginal revenue

Question

Quizplus · Accepted Answer

Marginal external costs refer to the additional costs imposed on society that are not factored into the market price of a good or service. These costs may include environmental damage, health problems, or resource depletion, among others. By producing one more unit of a good, these external costs are created, and they are not reflected in the price that consumers pay for the good. As a result, there is a market failure, and government intervention may be necessary to correct for this externality.

Marginal External Costs Are