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A and B entered a variety store owned by B.Unknown to A,B,or C the chocolate bar which A gave to B contained a piece of metal that had fallen into the chocolate mix when the candy bar was made.When B attempted to eat the chocolate,she damaged one of her teeth.She was obliged to have the tooth repaired by a dentist,and in addition,lost a day's work because of the painful injury to her mouth.Her total loss amounted to $300.00
The only person liable for B's injury would be the employee of the manufacturer who made the chocolate bar.C.A purchased two chocolate bars from C,and gave one to
Marginal Social Cost
The total cost to society of producing an additional unit of a good or service, including both private costs and any external costs.
Unregulated Level
Typically refers to a state in which market activities or specific industries operate without government-imposed controls or restrictions.
Marginal Cost
The growth in aggregate costs resulting from the manufacture of an additional product or service unit.
Externalities
Economic side effects or consequences of commercial activities that affect other parties without being reflected in the costs of the goods or services involved.
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