The cost of producing one more unit of a good or service that is paid by the producer
A) has to be equal to the benefit that the consumer derives from that good.
B) is equal to the cost borne by people other than the producer.
C) is the marginal private cost.
D) is the marginal external cost.

Question

Quizplus · Accepted Answer

The cost of producing one more unit of a good or service that is paid by the producer is known as the marginal private cost.

The Cost of Producing One More Unit of a Good