Which of the Following Answers Correctly Identifies Social Cost

question 22

Multiple Choice

Which of the following answers correctly identifies social cost?

• A)market price + external cost = social cost (True Answer )Correct
• B)external cost - market price = social cost
• C)market price + cost of production = social cost
• D)negative externality + positive externality = social cost

Understand the benefits and impacts of effective sourcing decisions.

Apply concepts of supply chain management to real-world scenarios.

Analyze demand distributions to make informed supply chain decisions.

Calculate expected understock quantities in supply chain scenarios.

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Definitions:

Average Total Costs

This term refers to the total costs (fixed plus variable) of production divided by the total quantity of output produced.

Marginal Costs

The cost incurred by producing one additional unit of a good or service, reflecting the change in total cost that comes from a change in quantity produced.

Marginal Cost

The financial increase associated with the generation of one more unit of a product or service.