Which of the following is true?

Question

Quizplus · Accepted Answer

Social costs refer to the total costs of producing a good or service, including both internal costs and external costs. Internal costs are the costs borne by the producer, such as labor, materials, and capital. External costs are costs borne by society as a whole, such as pollution, congestion, and other negative externalities. Therefore, the equation that accurately reflects the concept of social costs is: social costs = internal costs + external costs.

Which of the Following Is True