Marginal private cost (MPC)always includes:
A)The price of a good in the market
B)The extra costs of production of one more unit of a good
C)The additional benefits received by consumers from the consumption of the good
D)The costs imposed on society from pollution
E)The expenditures by government to control negative externalities

Question

Quizplus · Accepted Answer

Marginal private cost refers to the additional cost of producing one more unit of a good or service. It does not include the price of the good in the market, the additional benefits received by consumers, the costs imposed on society from pollution, or the government's expenditures to control negative externalities.

Marginal Private Cost (MPC)always Includes