Marginal social cost is equal to the
A) sum of marginal private cost and marginal external cost.
B) sum of marginal private cost and marginal private benefit.
C) marginal cost incurred by the producer of the good.
D) marginal cost imposed on others.

Question

Quizplus · Accepted Answer

Marginal social cost includes both the marginal private cost incurred by the producer and the marginal external cost imposed on others, reflecting the total cost to society.

Marginal Social Cost Is Equal to the