External costs can be defined as
A)the difference between costs to the producer from production and the costs to society from the production of a good.
B)the difference between the costs to society and the private benefits of production.
C)the difference between the private costs of production and the private benefits of production.
D)the difference between the marginal social costs and marginal benefits.

Question

Quizplus · Accepted Answer

External costs refer to the costs that are not borne by the producer but by society or the environment as a result of producing a good or service. These are costs that the producer's accounting does not typically capture, such as pollution or resource depletion, which affect others who are not directly involved in the production or consumption of the good.

External Costs Can Be Defined as