Marginal social cost is equal to
A)total private cost
B)marginal private cost
C)marginal external cost
D)marginal private cost plus marginal external cost
E)marginal private cost divided by marginal external cost

Question

Quizplus · Accepted Answer

Marginal social cost includes both the private cost (costs incurred by the producer) and the external cost (costs paid by society as a whole). Therefore, it is equal to the sum of marginal private cost and marginal external cost.

Marginal Social Cost Is Equal to