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Deputy Nelson is a captain for a jail in the county in which he lives. He has seen many changes in his 25-year career. As he nears retirement, his supervisor wants his input for changes he would like to see made for the new generation of employees. Deputy Nelson has the biggest meeting on Monday morning. He is meeting with his highest supervisor, which would be?
Marginal External Cost
The additional cost incurred by society due to one more unit of a good or service being produced, that is not accounted for by the producer.
External Cost
A cost of a transaction that affects someone who is not directly involved in the transaction.
Profit Maximizing
A strategy or point at which a firm decides the price and output level that leads to the maximum profit.
MSB Curve
The Marginal Social Benefit curve, showing the extra benefit to society of producing one more unit of a good.
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