Which of the following statements is true regarding marginal social costs?
A)They include external but not internal costs of production.
B)They include internal but not external costs of production.
C)They include both external and internal costs of production.
D)They measure the difference between social benefits and social costs.

Question

Quizplus · Accepted Answer

Marginal social costs are the additional costs that society bears when an additional unit of a good or service is produced or consumed. These costs include both internal costs (such as the private costs of producers) and external costs (such as pollution or congestion) that are not reflected in the market price. Therefore, option C is the correct answer. Options A, B, and D are incorrect.

Which of the Following Statements Is True Regarding Marginal Social