The marginal social cost of a movement along a production possibilities curve is the same as the opportunity cost of the movE.

Question

Quizplus · Accepted Answer

The marginal social cost of producing one more unit of a good is the cost to society of producing that unit, including any external costs. The opportunity cost of producing one more unit of a good is the amount of the other good that must be given up. When moving along a production possibilities curve, producing more of one good requires giving up some amount of the other good. Therefore, the marginal social cost of the movement is the same as the opportunity cost of the movement.

The Marginal Social Cost of a Movement Along a Production