Marginal social cost is the marginal cost incurred by the entire society - by the producer and by everyone else on whom the cos

Question

antoniya [11.8K]

3 years ago

14

Marginal social cost is the marginal cost incurred by the entire society - by the producer and by everyone else on whom the cos

t falls. It is the sum of marginal _____ and marginal _____.

Business

1 answer:

Airida [17] · Answer 1 · 2022-06-20T20:52:52+03:00

Answer:

Marginal social cost is the sum of marginal private cost and marginal external cost

Explanation:

Marginal social cost is the total cost society pays for the production of another unit or for taking further action in the economy.

Marginal Social Cost= MPC+MEC

where MPC = Marginal private cost

MEC = Marginal external cost

A private cost of production is a cost that is borne by the producer of a good or service. on the other hand, A marginal external cost is the cost of producing an additional unit of a good or service that falls on people other than the producer.

Marginal social cost is the marginal cost incurred by the entire society​ - by the producer and by everyone else on whom the cos

Marginal social cost is the marginal cost incurred by the entire society - by the producer and by everyone else on whom the cos