The difference between private cost and social cost is that
A)social cost only considers the external cost borne by society.
B)social cost only considers the cost borne by people other than the producer.
C)private cost only considers the cost borne by producers of the good.
D)social cost also includes any external benefit whereas private cost excludes all external benefits.
E)There is no difference;the terms refer to the same cost.

Question

Quizplus · Accepted Answer

Private cost refers to the costs that are borne by the producers of a good or service, while social cost includes both the private costs and any external costs borne by society.

The Difference Between Private Cost and Social Cost Is That