The Difference Between the Marginal Social Cost and the Marginal

question 11

Multiple Choice

The difference between the marginal social cost and the marginal private cost equals the

• A) cost of producing an additional unit of a good.
• B) marginal external benefit.
• C) marginal external cost.
• D) marginal private benefit.

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Definitions:

Retained Earnings

The portion of a company's profit that is held or retained and saved for future use, investment, or to pay debt, rather than being paid out as dividends to shareholders.

MCC

Stands for Marginal Cost of Capital, which is the cost of obtaining one additional dollar of new capital, used in financial analysis to determine the optimal capital structure.

MCC

MCC could refer to various concepts depending on the context, including Merchant Category Code in financial transactions, but without additional context, a precise definition cannot be provided.

Capital Components

Different sources of capital that a company uses to finance its operations and investments, including debt, equity, and preferred stock.