Ask Question
19 August, 20:05

What is a "social cost" of production? A. the total costs, both implicit and explicit, of producing the product B. the cost of the natural resources used in production C. the cost of environmental damage caused by production D. the sum of all costs to individuals in society, regardless of who bears the costs of production

+4
Answers (1)
  1. 19 August, 23:19
    0
    The correct answer is option D.

    Explanation:

    The social cost of production is the total cost incurred in the process of production b the society as a whole, irrespective of who bears the cost.

    In the production process, sometimes external costs are involved. These costs are borne by third parties. The social cost is the sum of private costs and external costs incurred in the production process.

    For instance, the cost of disutility caused b pollution will not be included in private cost but it is a social cost.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “What is a "social cost" of production? A. the total costs, both implicit and explicit, of producing the product B. the cost of the natural ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers