An example of a firm's marginal private cost is:
A) noise pollution generated by the production process.
B) raw material payments.
C) government regulations.
D) vaccinations.

Question

Quizplus · Accepted Answer

Marginal private cost refers to the cost that a firm incurs for producing one additional unit of a good or service. Raw material payments are a direct cost associated with the production process, making them an example of a firm's marginal private cost. Noise pollution and government regulations are considered external costs and not directly related to the production of one more unit. Vaccinations are not related to the production costs of a firm.

An Example of a Firm's Marginal Private Cost Is