A cost not borne by the producer but borne by other people is known as ________ cost.
A) a marginal
B) an internal
C) an external
D) a nonessential
E) a subsidized

Question

Quizplus · Accepted Answer

An external cost is a cost that is not borne by the producer but by other people, such as society as a whole or individuals. This can include things like pollution or traffic congestion. Marginal cost refers to the cost of producing one additional unit of a good or service, while internal cost refers to costs incurred by the producer. Nonessential and subsidized costs are not relevant to this concept.

A Cost Not Borne by the Producer but Borne by Other