Marginal social cost equals marginal _____ cost plus marginal _____ cost.

Question

Quizplus · Accepted Answer

Marginal social cost refers to the total cost to society of one more unit of a good or service. It includes the private cost, which is the cost to the producer to make one more unit, and the external cost, which is the cost to third parties that is not directly paid by the producer. Therefore, the marginal social cost equals the sum of the marginal private cost and the marginal external cost. The other options are not correct as they do not reflect the components of the marginal social cost.

Marginal Social Cost Equals Marginal _____ Cost Plus Marginal _____

Marginal Social Cost Equals Marginal _ Cost Plus Marginal _