Which of the following is true?
A) MSC = MC + Marginal external cost
B) MC = Marginal external cost - MSC
C) MC = Marginal external benefit + MSC
D) MSC = Marginal external cost + marginal external benefit
E) MSC = Marginal external cost - marginal external benefit

Question

Quizplus · Accepted Answer

MSC (Marginal Social Cost) is equal to the sum of MC (Marginal Cost) and Marginal External Cost. This is because MSC represents the total cost to society, which includes both the private cost (MC) and any external costs imposed on others (Marginal External Cost).

Which of the Following Is True