A Draft

question 100

Multiple Choice

A draft:

• A)is a document requesting payment.
• B)is the same as a letter of credit.
• C)is a reciprocal buying agreement.
• D)gives title to shipped goods.

---

Definitions:

Marginal Social Cost

The cumulative expense to society for creating one more unit of a product or service, encompassing both the personal costs and any external effects.

Private Marginal Cost

Private marginal cost refers to the cost that a company incurs for producing an additional unit of a good or service, excluding any external costs.

Marginal Social Cost

The total cost to society of producing one additional unit of a good or service.

Private Cost

The costs that an individual or company incurs directly as a result of its actions, excluding external costs borne by society.