Marginal Private Cost

question 290

Multiple Choice

Marginal private cost

• A) is always zero if there is an external cost.
• B) equals the marginal social cost only if the marginal external cost is positive.
• C) is the cost of producing an additional unit of a good or service that is paid by the producer of that good or service.
• D) the cost of producing an additional unit of a good or service that falls on people other than the producer of that good or service.
• E) the cost of producing an additional unit of a good or service that is paid by the entire society.