The Difference Between Private Cost and Social Cost Is That

question 238

Multiple Choice

The difference between private cost and social cost is that

• A) social cost only considers the external cost borne by society.
• B) social cost only considers the cost borne by people other than the producer.
• C) private cost only considers the cost borne by producers of the good.
• D) social cost also includes any external benefit whereas private cost excludes all external benefits.
• E) there is no difference; the terms refer to the same cost.

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Definitions:

Large Lots

Manufacturing or purchasing products in bulk quantities, often to achieve economies of scale and reduce per-unit costs.

Make-Or-Buy Decision

A strategic decision that businesses use to determine whether they should produce an item internally or buy it from an external supplier.

Supplier Relationships

The interactions and partnerships formed between a buying company and its suppliers, crucial for ensuring supply chain efficiency and resilience.

Services On Demand

The delivery of services exactly when they are needed or requested by customers, often facilitated by technology and the digital economy.