Which of the Following Statements Is Correct

question 102

Multiple Choice

Which of the following statements is correct?

• A)Marginal social cost is the share of marginal cost caused by an activity that is paid for by the persons who carry out the activity.
• B)Marginal private cost is the share of marginal cost caused by an activity that is borne by persons other than those who carry out the activity.
• C)Marginal social cost is the sum of marginal private cost and incidental cost.
• D)Marginal private cost and incidental cost are one and the same.

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