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Pat smokes cigarettes and strongly believes that doing so is bad for one's health. On a health questionnaire, Pat initially answered "No" to the question, "Do you engage in any health-harming behaviours?" Pat felt uncomfortable with that answer and changed it to "Yes." Of the alternatives below, Pat's answer-changing behaviour best reflects the notion of
Marginal Social Cost
The total cost to society of producing an additional unit of a good, including both private costs and any externalities.
External Cost
Costs of a transaction that affect people other than the buyer or seller, often not included in the price of goods or services.
Efficient Amount
The level of production or quantity of a good that optimizes the use of resources to achieve the highest possible satisfaction or benefits.
Unregulated Amount
A quantity or volume not controlled or limited by laws or administrative rules, often relating to production or trade.
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