The marginal cost of production that is borne by the entire society is called the marginal
A) private cost.
B) social cost.
C) external cost.
D) public cost.
E) user cost.

Question

Quizplus · Accepted Answer

Social cost includes both private cost and external cost (the cost that is borne by third parties not directly involved in the transaction). It reflects the total cost of production to the society as a whole.

The Marginal Cost of Production That Is Borne by the Entire