The marginal cost incurred by the entire society to produce a good or service is the
A) marginal external cost.
B) marginal private cost.
C) marginal social cost.
D) marginal social benefit.
E) marginal private benefit.

Question

Quizplus · Accepted Answer

Marginal social cost (MSC) takes into account both the private cost incurred by the producer and the external costs imposed on society, such as pollution or traffic congestion. It reflects the true cost of production to society and helps to address market failures caused by negative externalities.

The Marginal Cost Incurred by the Entire Society to Produce