We call costs that fall directly on an economic decision maker:
A) social costs.
B) private costs.
C) external costs.
D) network costs.

Question

Quizplus · Accepted Answer

Private costs are those costs which fall directly on an economic decision maker, such as the cost of production or consumption of a good or service. Social costs (A) include both private costs and costs that are imposed on third parties, while external costs (C) are costs incurred by third parties who are not involved in the economic transaction. Network costs (D) are a type of costs associated with communication and transportation technologies.

We Call Costs That Fall Directly on an Economic Decision