The total social costs of production are:

Question

Quizplus · Accepted Answer

The total social costs of production include both private costs and external costs. Private costs are the costs incurred by producers in the production process, while external costs are costs imposed on third parties who are not involved in the production process. These costs can include pollution, congestion, and other negative externalities. Therefore, the correct answer is C, which states that the total social costs of production are the sum of private costs and external costs.

The Total Social Costs of Production Are