The Cost of Producing an Additional Unit of a Good

question 342

Multiple Choice

The cost of producing an additional unit of a good or service that is borne by the producer of that good or service is the

• A) marginal external cost.
• B) marginal private cost.
• C) marginal social cost.
• D) None of the above answers is correct.

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Definitions:

Persons

Legal entities that include human beings as well as corporates and other entities recognized by law as having rights and obligations.

New York Convention

An international agreement governing the use of arbitration as a method of resolving private international disputes.

International Agreement

A legally binding contract between sovereign nations governed by international law.

Private International Disputes

Conflicts that arise between private parties that cross international borders, often requiring the application of foreign law.