When an additional unit of output is produced, the extra cost to society is the
A)average total cost.
B)marginal social cost.
C)marginal private cost.
D)marginal external cost.
E)marginal damage.

Question

Quizplus · Accepted Answer

Marginal social cost refers to the additional cost imposed on society as a whole when an additional unit of output is produced. It includes both the private cost incurred by the producer and any external costs, such as pollution or congestion, that are imposed on third parties. Therefore, it is the most appropriate choice for this scenario.

When an Additional Unit of Output Is Produced, the Extra