Social Costs Include the Following

question 35

Multiple Choice

Social costs include the following:

• A) explicit costs only
• B) implicit costs only
• C) only those costs that society bears because of the firm's activities.
• D) private costs plus those costs that society bears because of the firm's activities.
• E) implicit costs plus those costs that society bears because of the firm's activities.

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Definitions:

Product Liability Case

Legal cases that arise when a consumer is harmed by a defective product, holding manufacturers or sellers responsible for distributing an unsafe product.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, which results in unintended harm to another.

Liable

Legally responsible or obligated to make amends for harm caused by one's actions or negligence.

Action in Negligence

A legal claim brought against someone for harm caused by their failure to act as a careful person would under similar circumstances.