Marginal social cost is defined as the marginal private cost plus the opportunity cost.
When an extra or additional unit of a good or service this produced brings about a change in society's total cost. This change in society's total cost is called marginal social cost. This includes both the opportunity cost and the marginal private cost. So it is the total of the private cost and the external cost that the person has to pay.
Marginal private cost is the change in the total cost of the producer due to the production of an additional unit of a good or service. This cost is also known as the marginal cost of production For example if the production of a person's costs rises from$1,000 to $1,050 due to the production of this one good being produced for $50 is known as the marginal private cost.
The opportunity cost is the benefit the person would have gotten if he would have invested the money elsewhere. For example, if the person has an extra $50. He can either invest it in the business or he can invest it in the bank and get the interest. The interest money that the person has to forgo is called the opportunity cost.
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The choice represent internalization theory.
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The outward movement of the operations of any firm can be defined as an internalization. Internalization is mainly carried out for the purpose of achieving advantages when a firm is located at foreign nations. This may be because there exists a larger market for a particular product in foreign nations.
Making investments at foreign regions also refers to internalization. The internalization theory of the firms that are multi nationally located has investments in intangible assets that has a public good properties. In the given example represents the internalization theory choice of economic theory.
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C) Use of a predictive modeling system that predicts life expectancy by using data about individual consumers' buying habits as well as personal and family medical histories.
Explanation:
Big data are a set of data that when analysed and studied show trends and patterns of individuals and firms.
Answer:
Endowment effect
Explanation:
Endowment effect also referred to as divestiture aversion occurs where individual places or ascribes much higher value than market value on product they already have. where endowment effect is at play the owner of an asset will refuse to sell the asset owned at a the market price higher than the initial cost. and even not ready to buy same item at the market price when offered.
This surprising behavioural pattern was discovered by a psychologist Richard Thaler in the 1970s
Answer:
D. $520 favorable is the correct answer.
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