The Difference Between Private Cost and Social Cost Is That

question 238

Multiple Choice

The difference between private cost and social cost is that

• A) social cost only considers the external cost borne by society.
• B) social cost only considers the cost borne by people other than the producer.
• C) private cost only considers the cost borne by producers of the good.
• D) social cost also includes any external benefit whereas private cost excludes all external benefits.
• E) there is no difference; the terms refer to the same cost.