A Private Cost of Production Is a Cost That Is

question 113

Multiple Choice

A private cost of production is a cost that is borne by the ________ of a good or service. A social cost of production is a cost that is ________.

• A)consumer;borne by the producer and by everyone else on whom the cost falls
• B)consumer;not borne by the producer but borne by other people
• C)producer;not borne by the producer but borne by other people
• D)producer;borne by the producer and by everyone else on whom the cost falls
• E)producer;borne by the consumer

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Definitions:

Midpoint Method

A technique used to calculate the elasticity of demand or supply between two points on a curve by averaging the two points' quantities and prices.

Cross-price Elasticity

A measure of how the quantity demanded of one good changes in response to a change in price of another good.

Price Elasticity

Understanding the correlation between the price of a good and the demand it receives.

Strawberries

A soft, red fruit with a sweet flavor and a fragrant aroma, often consumed fresh or used in culinary preparations.