The personal decisions of consumers and firms are based on:

Question

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Consumer and firm decisions are typically based on internal costs, which refer to the cost of producing or consuming a good or service that is directly incurred by the individual or firm involved. This includes factors such as the cost of materials, labor, and overhead for a firm, or the price, convenience, and quality of a good for a consumer. While external costs (such as environmental damage or health impacts) and third-party costs (such as costs incurred by people other than the buyer or seller) may also be relevant, they are not typically the primary consideration for most economic decisions. Social cost and public-good costs are also important concepts in economics, but they are not directly relevant to the personal decisions of consumers and firms in the same way.

The Personal Decisions of Consumers and Firms Are Based On