Which of the following statements is correct regarding the term marginal social cost?
A)It includes only the private costs of production.
B)It includes only the external costs of production.
C)It includes both the private and the external costs of production.
D)It is the difference between external costs and private costs of production.

Question

Quizplus · Accepted Answer

Marginal social cost includes both the private costs of production (such as wages, raw materials, etc.) and the external costs of production (such as pollution, traffic congestion, etc.). It represents the total cost to society for producing one additional unit of a good or service.

Which of the Following Statements Is Correct Regarding the Term