When private and social costs are equal,

Name: When private and social costs are equal,
Brand: Quizplus
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Question

Quizplus · Accepted Answer

When private and social costs are equal, it means that all costs associated with the production and consumption of a good or service are being fully accounted for and borne by the involved parties. There are no external costs (such as pollution) that are being unfairly imposed on others, so there is no market failure or need for government intervention.

When Private and Social Costs Are Equal