What is a "social cost" of production?
A)the cost of the natural resources used up in production
B)the total costs of producing a product, both implicit and explicit costs
C)the sum of all costs to individuals in society, regardless of whether the costs are borne by those who produce the products or consume the product
D)the cost of the environmental damage created by production

Question

Quizplus · Accepted Answer

A social cost of production is the sum of all costs to individuals in society, regardless of whether the costs are borne by those who produce the products or consume the product. This includes costs such as environmental damage, health impacts, and other negative externalities. It is important to consider social costs when evaluating the overall impact of production on society.

What Is a "Social Cost" of Production