Which of the following statements about private and social costs is TRUE?
A) Social costs include externalities.
B) Private cost do not include externalities.
C) Social costs are never smaller than private costs.
D) All of the above.

Question

Quizplus · Accepted Answer

All statements are true regarding private and social costs. Social costs include both private costs and externalities, while private costs do not account for externalities. Consequently, social costs are never smaller than private costs because they encompass the broader impacts on society.

Which of the Following Statements About Private and Social Costs