Marginal private cost
A) is the cost of producing an additional unit of a good or service that is paid by the producer of that good or service.
B) is always zero if there is an external cost.
C) equals the marginal social cost only if the marginal external cost is positive.
D) is the cost of producing an additional unit of a good or service that falls on people other than the producer of that good or service.
E) the cost of producing an additional unit of a good or service that is paid by the entire society.

Question

Quizplus · Accepted Answer

Marginal private cost is the cost of producing an additional unit of a good or service that is paid by the producer of that good or service. This cost includes the costs of labor, materials, and other inputs.

Marginal Private Cost