Which of the Following Represents the True Economic Cost of Production

question 217

Multiple Choice

Which of the following represents the true economic cost of production when firms produce goods that cause negative externalities?

• A)the private cost of production
• B)the social cost of production
• C)the external cost of production
• D)the explicit cost of production

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Definitions:

Plan's Implementation

The process of putting a planned strategy into action to achieve desired objectives and goals.

Necessary Support

The essential assistance or resources provided to individuals or organizations to facilitate the achievement of specific goals.

Negative Consequences

Unfavorable results or impacts that follow a specific action or decision.

Behavioural Decision Model

A theory that explains decision making by individuals based on psychological factors, including biases, perceptions, and other behavioral aspects.