What are private costs?
A) costs borne by the government
B) costs borne by both an item's producer and outside parties affected by a negative externality
C) costs borne by the producer of an item
D) costs borne by outside parties affected by a negative externality

Question

Quizplus · Accepted Answer

Private costs are costs that are borne by the producer of a good or service. These costs include the costs of production, such as labor, materials, and equipment. Private costs do not include any externalities that affect third parties outside of the transaction.

What Are Private Costs