Which of the Following Statements Is True Regarding Marginal Social

question 35

Multiple Choice

Which of the following statements is true regarding marginal social costs?

• A)They include external but not internal costs of production.
• B)They include internal but not external costs of production.
• C)They include both external and internal costs of production.
• D)They measure the difference between social benefits and social costs.

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Definitions:

Monopsonistic Employer

A market condition in which a single buyer significantly controls the market as the major purchaser of goods and services.

Marginal Resource Cost

The additional cost incurred by using one more unit of a resource.

Upsloping Labor Supply Curve

A graphical representation indicating that as wages increase, the quantity of labor supplied also increases.

MRC Curve

The Marginal Resource Cost curve, representing the additional cost incurred by employing one more unit of a resource in production.