The cost of producing an additional unit of a good or service that is borne by the producer of that good or service
A) equals the cost borne by people other than the producer.
B) is the external cost.
C) is the marginal social cost.
D) is the marginal private cost.
E) always equals the benefit the consumer derives from that good or service.

Question

Quizplus · Accepted Answer

The cost of producing an additional unit of a good or service that is borne by the producer is known as the marginal private cost, which is the cost incurred by the producer in producing an additional unit of output.

The Cost of Producing an Additional Unit of a Good